Subtenant of Homeless Service Organization Gets New Trial to Claim Rent-Stabilized Status

In February 2019 landlord sued to evict unregulated tenant, Services for the Underserved, which was a not-for-profit organization that assisted people at risk for homelessness by procuring housing for them and providing mental health services. Tenant advised the court that it wasn't contesting landlord's holdover petition. But subtenant, who occupied the apartment, appeared by a guardian ad litem and opposed the eviction petition. The subtenant argued that, under Ch. 36, Section 1, Part J of the HSTPA, she was entitled to rent stabilization protection by law.

The court ruled against subtenant and found that the cited HSTPA provision became effective prospectively and therefore didn't apply retroactively to this proceeding. The subtenant then obtained legal counsel and sought to vacate the judgment and warrant. The housing court and Appellate Term ruled against subtenant.

The subtenant then appealed further and won. The Appellate Division ruled that the lower court had the authority to vacate the judgment. In addition, subtenant's guardian ad litem (GAL) had failed to file an answer before the lower court on subtenant's behalf and didn't assist subtenant in obtaining an attorney or cross-examine landlord's witness at trial or submit evidence. The subtenant's trial testimony indicated that she didn't understand the nature of the court proceeding. The Appellate Division reversed the prior rulings and sent the case back for a new trial. 

Anderson Ave. Assoc. LP v. Fuller: Index No. 570521/22, App. No. 4228-4228A, Case No. 2023-03330, 2025 NY Slip Op 02640 (App. Div. 1; 5/1/25; Renwick, PJ, Manzanet-Daniels, Higgitt, Rosado, JJ)