Tenant Must Pay Property and Water Taxes to Plot Owner

Facts: Landlord owned land containing a 675-unit housing complex. Tenant, like all other tenants, built and owned a single-family home on the land. In 1962, the property was put under rent control. Landlord cooperative corporation bought the complex under a noneviction plan in 1988. Until 1990, tenant had always paid property and water taxes for the land to landlord. Tenant stopped paying in 1990, and landlord sued tenant for unpaid taxes. Tenant claimed that her rent-controlled lease defined the property and water taxes as additional rent and that it was illegal to charge her more than the maximum rent under rent control. Court: Landlord wins. Only the land is rent-controlled. The charges in question are taxes, not rent---even if they are called ``rent'' in the lease. Landlord has always paid the land taxes and seeks from tenant only the additional taxes assessed for building improvements made by tenant and water used by tenant. Tenant had previously complied with this agreed-upon custom and usage.

Edgewater Park Owners' Cooperative, Inc. v. Kilmer: NYLJ, p. 23, col. 2 (10/6/93) (Civ. Ct. Bronx; Targum, J)