Unit Rented by Nonprofit for Supportive Housing Was Subject to Rent Stabilization

Landlord sued apartment tenant, which was a nonprofit organization that rented the unit to provide supportive housing to its occupant. Landlord sought a declaratory judgment that the apartment wasn't rent stabilized, as well as a judgment of ejectment, a judgment for use and occupancy, and attorneys' fees against tenant. The parties agreed to join the apartment occupant as a party to the case. Tenant and subtenant asked the court to dismiss the case because the unit was rent stabilized. Landlord argued that the apartment was exempt because tenant was a corporation and because RSC Section 2520.11(f) generally exempted housing accommodations rented by a charitable organization and occupied by a tenant whose initial occupancy was contingent upon affiliation with the organization. Landlord also argued that tenant acknowledged in its lease that the apartment was exempt from rent stabilization. 

The court ruled for the tenant and occupant. Any language in the lease waiving rent stabilization was null and void, since under law and public policy, a party can't waive rights under rent stabilization. And landlord's claimed exemptions were invalid; the apartment was subject to rent stabilization. Since landlord failed to serve a termination notice required under the RSC before starting the case, it must be dismissed. 

55 Lenox LLC v. CAMBA, Inc.: Index No. 523050/2021, 2023 NY Slip Op 33494(U)(Sup. Ct. Kings; 10/4/23; Rivera, J)