Legal Line Question of the Week Rent Stabilized Leases Q: When can a Landlord (hereinafter the “Landlord or “Owner”) refuse to renew the lease of a rent stabilized tenant (the “Tenant”) who lives in a rent stabilized apartment (the “Apartment”)? Furthermore, under what circumstances can an Apartment be “deregulated”? A: Generally, an Owner may refuse to renew a rent stabilized Tenant’s lease in the following circumstances, and only upon providing the Tenant with the required prior written notice: (i) where the Owner wants to take over the Apartment for his/her (or a member of the Owner’s “immediate family”) personal use and occupancy as a primary residence; (ii) where the Apartment is not occupied by the Tenant as their primary residence; or (iii) where the Owner takes the Apartment off the rental market or demolishes the building. Notwithstanding the foregoing, an Owner cannot evict a Tenant from an Apartment if the Tenant, or the Tenant’s spouse, is 62 years or older (or if the Tenant is disabled). An Apartment may be deregulated, and removed from the benefits of the rent stabilization laws, when the legally regulated rent is $2,500.00 (or more) per month & the Apartment is occupied by Tenants whose total annual household income exceeds $200,000 (or $175,000 or $250,000 based upon the applicable circumstances) in each of the two preceding years. An Apartment may also be deregulated if the Apartment is vacated and could be offered at a legal rent of $2,500.00 or more. Furthermore, after a rent stabilized building is converted to a co-op or condominium, rent stabilized Tenants residing in the building at the time of the conversion are generally allowed to remain in possession of the Apartment pursuant to a non-eviction conversion plan. However, once the rent stabilized Tenant vacates the Apartment, then the Apartment will be removed from the protection of the rent stabilization laws. Sometimes, albeit rarely, an apartment building is converted to a co-op or condominium pursuant to an eviction plan. Under an eviction plan, the Owner may evict (in accordance with applicable rules and procedures) the Tenant and/or refuse to renew a lease if the Attorney General has accepted the plan as an eviction plan and three years have elapsed from the date on which the Attorney General accepted the eviction plan. If a building is newly constructed or substantially rehabilitated and takes advantage of a 421-a or J-51 Tax abatement/program, then the building may only be regulated for the period of the tax abatement. Important Tip: Issues concerning the Rent Stabilization Laws are very complicated. Therefore, when faced with a question from a Landlord and/or Tenant, you should advise the Tenant and/or Landlord to consult with their respective attorney. Neil B. Garfinkel, REBNY Broker Counsel Partner-in-charge of real estate and banking practices at Abrams Garfinkel Margolis Bergson, LLP
Posted on: Thu, 31 Oct 2013 16:13:36 +0000
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