Tenant-Employee Didn't Become Rent Stabilized When Hospital Employment Ended

Tenant asked the DHCR for a ruling that she was subject to rent stabilization. Landlord, a hospital, argued that tenant lived in the apartment as an incident of her employment and that, when her employment ended, so did her right to remain in the apartment. The DRA ruled for tenant.

Landlord appealed and lost. Landlord then filed an Article 78 court appeal of the DHCR's decision, claiming it was unreasonable. The DHCR agreed to take the case back for further consideration.

The DHCR then ruled for landlord and revoked its prior determination. RSC Section 2520.11(f) provides that rent stabilization doesn't apply to an apartment that's occupied by a tenant whose initial occupancy is contingent upon an affiliation with a nonprofit institution. It was undisputed that tenant moved into the apartment under an Occupancy Agreement that specified that she was entitled to live there as a hospital employee and that the right to do so would end upon termination of her employment. The fact that the hospital allowed tenant to remain in the unit after her employment ended in 2014 didn't automatically convert her status to rent stabilized. 

Maimonides Medical Center: DHCR Adm. Rev. Docket Nos. LO210001RP, HV210222RO (9/7/23)[3-pg. document]