Showing posts with label Holdover. Show all posts
Showing posts with label Holdover. Show all posts

Monday, April 11, 2022

ERAP AND STAYS IN HOLDOVER - ANOTHER DECISION


Barton v. Bixler, 2022 NY Slip Op 50228 - NY: Dist. Court, Suffolk County, 3rd Dist. March 30, 2022:

"The petitioner landlord Joseph Barton (hereafter "landlord") commenced this summary eviction proceeding pursuant to petition dated September 29, 2020. The tenant, Kelly Bixler (hereafter "the tenant") previously filed a COVID hardship tenant's declaration and received an automatic stay of this eviction proceeding. The Court notes that the COVID Moratorium stay statutorily vitiated on January 15, 2022. Of relevant significance, the tenant has also interposed the affirmative defense that this matter is stayed pursuant to the provisions of New York State's "Emergency Rental Assistance Program" law (Chapter 417(A)(B3)) of Chapter 56 of the laws of 2021, (hereafter "ERAP"), as a result of the filing of an ERAP application on June 22, 2021. The status of same as detailed by the New York State Office of Temporary and Disability Assistance (hereafter "the Administering Agency") on the date of the first hearing on this application was "under review". By application dated February 7, 2022 the landlord moved to vacate the ERAP automatic stay.

February Hearing

During the initial stage of the hearing on this application, the landlord advanced two arguments. The first was that the tenant is not eligible for ERAP and the second is that the ERAP program is presently "in an unfunded condition". The landlord argues that it is well known that the Administrating Agency has exhausted its funding and is not in a position to finalize a decision on ERAP eligibility. It is argued that as such, the prospect of an administrative decision which could potentially vacate the ERAP stay is at best "illusory", and at worst an "indeterminate impossibility".

As to the first issue posited; this Court has previously opined that it has the inherent concurrent authority to conduct a "good faith" hearing to assess eligibility when a tenant has invoked a self initiated automatic stay by filing an application under the ERAP statute. See, Abuelafiya v. Orena, 73 Misc 3d 576 (Suff. Co. Dist. Ct. 2021). See also, Hudson Ave. Housing Associates v. Howard, 2022 WL 829785 (Civ. Ct. Warren Co., J. Hobbs). The guiding premise of said opinion was the United States Supreme Court's striking down New York's companion eviction moratorium law; wherein it was determined that "due process" prohibits a statute from "precluding a landlord from contesting. .. certification (of eligibility) and denies the landlord a hearing" to challenge the automatic stay. The problem found with a self certification is that "no man can be a judge in his own case". See, Chrysafia et al v. Marks, 141 S. Ct. 2482 (U.S. 2021); citing to In re Murchison, 349 U.S. 133 (U.S. 1955).

The Court laid out the ERAP eligibility requirements in its Abuelafiya decision and incorporates them by reference herein. The record presented in the hearing the Court conducted in February evidences that the tenant is eligible. The second thornier issue was the landlord's contention that the exhaustion of ERAP funding makes the statutory "alternative remedy" scheme an unconstitutional sham.[1] Fortunately, the Court need not delve into the constitutionality of the ERAP statute as during a briefing adjournment ERAP distributed $15,000.00 representing a fifteen (15) month maximum distribution which was deposited by the landlord "under protest".

Such a payment belies any contention of an illusory sham funding program. The only remaining issues as framed by the parties during the March hearing are whether the deposit of said funds "under protest" is "participation" with ERAP. Secondly, whether the tender and acceptance of the maximum ERAP benefit establishes a waiver of the approximately nine (9) months ($9,000.00) presently due, over and above the fifteen (15) months which were paid by ERAP.

March 2022 hearing "Under Protest"

The Court will summarily deal with the landlord's threshold argument that if a landlord declines to participate in ERAP: that he is not bound by the statute's stays and/or declared waivers. See, Actie v. Gregory, 74 Misc 3d 1213(A), (NY Civ. Kings County 2022) in support of this contention. See also, Carousel Properties v. Valle, 74 Misc 3d 1217(A) (Suff. Co. Dist. Ct. 2022) for the finding that even acceptance of ERAP funds doesn't re-instate a tenancy. While this may be correct; the facts in the present case indicate that the landlord did in fact complete his component of the ERAP application and as such the deposit of a maximum benefit (even under a last minute protest) is participation.

Is Acceptance of Partial Payment A Waiver of All Outstanding Arrears?

However, it is quite a more compelling argument to assert that ERAP cannot compel a waiver of the nine (9) months of outstanding rent due after receipt of the fifteen (15) maximum payments. How can a tenant be "eligible" for an ERAP payment after having already received the maximum benefit. Inherently, the applicant is no longer eligible. A review of the exact statutory language in ERAP discloses on page 4, Sec. 5(d) at line 46 as follows:

Acceptance of payment for rent or rental arrears from this program or any local program administering federal emergency rental assistance program funds shall constitute agreement by the recipient landlord or property owner: (i) that the arrears covered by this payment are satisfied and will not be used as the basis for a non-payment eviction. Emphasis added.

The fundamental purpose of ERAP is to provide a stay of eviction pending a determination that the tenant is eligible to receive up to fifteen (15) months of rental arrears. Upon acceptance of same, the landlord waives any late fees or other minor discrepancies of the amount due for the covered fifteen (15) month period. However, should the statute seek to compel waiver of sums due for months not "in the covered arrears", which are in excess of the fifteen (15) month maximum benefit, the statute again runs into constitutional peril as violative of Article I, Sec. 10 of the U.S. Constitution involving the prohibition against governmental "impairment of private contracts".

The Court is required to construe statutes in a manner to avoid constitutional violations. See New York Statutes, Sec 150. The only manner for the court to avoid the aforestated constitutional issue is to read the statute as it is plainly written and determine that the legislature only intended to cure fifteen (15) months of arrears and to leave any excess arrears to the tenant to cure. See generally, Abuelafiya v. Orena cite infra citing to People v. Liberta, 64 NY2d 152, 485 N.Y.S. 2d 207, 474 N.E. 2d 567 (NY 1984), United States v. Rumely, 345 U.S. 41, 73 S.Ct. 543, 97 L.Ed. 770 (1953), Collado v. Boklari, 27 Misc 3d 161, 892 N.Y.S. 2d 731 (Suf. Co. Dist. Ct. 2009).

As the automatic stay ceased upon the ERAP determination of payment approval, no stay exists. As no waiver for the remaining uncovered nine (9) months occurred the tenant is responsible to pay same ($9,000.00) on or before May 1, 20022 to cure her rent arrears. If payment is made, this petition will be dismissed. If not, the landlord may submit judgment for $9,000.00 plus judgment of possession and a warrant of eviction.

[1] As in the Chrysafia case, new York's automatic stay ERAP statute allows for self certification. The difference in the case at bar is that the ERAP statute creates an administrative process wherein eligibility is determined by an Administrating Agency, and that the stay is indeterminate except for the fact that the ERAP program sunsets in 2025. Other trial Courts in New York has sought to distinguish ERAP from the companion "moratorium" statutes by asserting that the due process clause of the 5th and 14th amendments of the U.S. constitution are not violated because ERAP is a "diversion" program which merely transfers litigation to an alternative regulatory forum. See, Harbor Tech, LLC v. Correa, 73 Misc 3d 1211 (A) (NY Civ. Ct. 2021); Montgomery v. Daniels, 38 NY2d 41(NY 1975). The Montgomery case involves a statutorily created limit to Court access as a consequence of an "alternative remedy" for recovery. In the nature of dicta, the issue of whether an unfunded ERAP Administrative Agency is constitutionally sustainable is now temporarily moot. However, the Court does opine that any alternative remedy program must still comport with the seminal case defining due process as requiring "an opportunity to be heard" wherein an adverse litigant must receive a hearing before a neutral tribunal "in a meaningful time" and in a "meaningful manner". See, Bodie v. The State of Connecticut, 461 U.S. 371 (U.S. 1971), citing to Armstrong v. Manzo, 380 U.S. 545 (U.S. 1965)."

Wednesday, March 16, 2022

ERAP AND STAYS IN HOLDOVER - ANOTHER VIEW


CAROUSEL PROPS. v. Valle, 2022 NY Slip Op 50168 - NY: Dist. Court, Suffolk County, 6th Dist. 2022:

"JAMES F. MATTHEWS, J.

And after due deliberation it is hereby

ORDERED, that petitioner's motion to vacate the automatic stay granted by state law to tenants who file for rental assistance benefits pursuant to the Emergency Rental Assistance Program ("ERAP") is denied. Petitioner made this application to the court orally on January 26, 2022, which was orally opposed by counsel for respondents. The court denied the motion but granted petitioner leave to file a written motion seeking the same relief. That motion was submitted to the Court on February 9, 2022. Counsel for respondents again orally opposed the motion for the same reasons that the court now denies the motion on the same grounds the oral motion was denied on January 26, 2022.

This is a holdover petition. Petitioner avers that he seeks to occupy the subject property as his principal residence. The respondent has applied for ERAP funds. The application is pending. Petitioner states that he does not want any ERAP money nor any money from respondent. As stated, he seeks only to regain possession of the property for the purpose of residing there as his primary residence. While acknowledging that in general there is a stay of evictions in effect for all residential evictions where an application for ERAP is pending, petitioner claims that there is an exception to the ERAP automatic stay for owners of one to four single family homes where the owner or an immediate family member intends to reside in the unit in issue.

Any pending summary proceeding against a tenant is stayed once that tenant has applied for ERAP benefits. The stay remains in effect pending a final determination of eligibility. L.2021, c. 417, Part A, §4. A landlord does not possess the right to dissolve the stay be refusing to accept ERAP funding and/or refusing to provide required input for the application to be complete. If the landlord refuses to accept tendered payment of ERAP funds, the tenant would be entitled to a credit for the ERAP grant that the landlord refused to accept. See Harbor Tech LLC v. Correa, 73 Misc.3s 1211(A), 2021 N.Y.Slip Op. 50995(U) (Kings Co. Civil Court). See also Sea Park East L.P. v. Foster, 74 Misc 3d 213, 2021 NY Slip Op. 21347 (Civ. Ct. N.Y. Co.).

Upon acceptance of ERAP funds, the landlord becomes bound to certain conditions. The law provides as follows:

(d) Acceptance of payment for rent or rental arrears from this program or any local program administering federal emergency rental assistance program funds shall constitute agreement by the recipient landlord or property owner: (i) that the arrears covered by this payment are satisfied and will not be used as the basis for a non-payment eviction; (ii) to waive any late fees due on any rental arrears paid pursuant to this program; (iii) to not increase the monthly rent due for the dwelling unit such that it shall not be greater than the amount that was due at the time of application to the program for any and all months for which rental assistance is received and for one year after the first rental assistance payment is received; (iv) not to evict for reason of expired lease or holdover tenancy any household on behalf of whom rental assistance is received for 12 months after the first rental assistance payment is received, unless the dwelling unit that is the subject of the lease or rental agreement is located in a building that contains 4 or fewer units, in which case the landlord may decline to extend the lease or tenancy if the landlord intends to immediately occupy the unit for the landlord's personal use as a primary residence or the use of an immediate family member as a primary residence; and (v) to notify the tenant of the protections established under this subdivision. L.2021, c. 417, Part A, §5.

A plain reading leads to the inescapable conclusion that this exception only applies to continued occupancy after payment of ERAP funds. Simply stated, a tenant who is approved for ERAP rent benefits which the landlord accepts may not be evicted due to an expired lease or as a holdover but is entitled to continue the tenancy for a period of 12 months following the tender of ERAP rent payment to the landlord at the same rent that was previously due. If the tenant defaults in these payments then a non-payment proceeding may be commenced. After expiration of the 12 months, the landlord is under no obligation to continue the tenancy but may seek eviction as provided by law. In all cases, pre and post ERAP, the landlord can seek to evict based upon the nuisance exception (intentionally causing substantial damage or for persistent and unreasonable behavior that infringes on the use and occupancy of others or which causes a substantial safety hazard to others). L.2021, c. 417, Part A, §6. The exception relied upon by the petitioner is available only after a tender of ERAP funds. A landlord of a one to four family dwelling who intends to occupy the unit at issue (either personally or by an immediate family member) is not required to allow the tenants the additional 12 months occupancy but can seek to evict immediately upon payment of the ERAP benefits. There is nothing in the statute that authorizes the Court to disregard the automatic stay of eviction triggered by a pending ERAP application and grant a judgment of possession and warrant of eviction before a final determination of eligibility for ERAP funds.

It is important to note that the ERAP law does not require a landlord to accept the funding. In that case, the landlord would not be bound by the conditions of acceptance noted above with respect to continued occupancy. The Court finds nothing in the legislation that mandates a landlord to accept tendered ERAP money. Therefore, any landlord regardless of their intention to personally occupy the leased premises as their primary residence would be able to continue with eviction proceedings in the event they refused to accept proffered payment. The only landlord who may both accept the ERAP funds and evict forthwith after acceptance of the payment are those who desire to occupy the demised premises as their primary residence (either personally or by an immediate family member), which would have to be proven as part of the landlord's case. Furthermore, in such case the landlord's pending petition could be the vehicle for a hearing on the petition. In such instance, the petition would not be subject to dismissal because of the acceptance of ERAP funds. The petition would only be dismissed if they failed to prove at the hearing that they truly intended to occupy the premises as their primary residence (either personally or by an immediate family member), or if the tenant had another valid defense as provided by law. Again, as noted, the landlord who refuses the tendered ERAP funds may seek immediate eviction based upon the pending petition without any intention to occupy the premises as their primary residence.

Furthermore, a petitioner may not request a hearing challenging the eligibility of a tenant for ERAP benefits. There is a statutory procedure for making this determination without any provision for the courts to make such determinations. There is a procedure established for application and determination of eligibility. The Court in Harbor Tech LLC, supra, analyzed the due process issues that petitioner makes now. The Court agrees with this analysis. The ERAP stay is distinct from the hardship stay in effect, which was struck down by the United States Supreme Court in Chrysafis v. Marks, 141 S.Ct. 2482 (2021). The Court ruled that landlords' due process rights were violated because they were not able to request a hearing to challenge the tenant's self-certification of a covid-related hardship. The New York legislature responded to this ruling in September of 2021 by enacting amendments that provided for the right of landlords to challenge the tenant's declaration of financial hardship. The ERAP mandatory stay presents an entirely different scenario. The purpose of ERAP is to provide compensation to landlords for past rent. This burden of the time necessary to make an eligibility determination is outweighed by the financial benefit that ERAP is designed to provide directly to landlords.

The Court is of the opinion that in the event of a credible allegation of fraud, a landlord could request a hearing. It would be at the discretion of the court to determine whether the allegation rises to the level of intentional fraud that would permit the court to proceed with a hearing on the merits of the petition notwithstanding the pendency of an ERAP application. The petitioner would have to prove respondent's fraud by clear and convincing evidence. In Abuelafiya v. Orena, 73 Misc 3d 576, 155 N.Y.S.3d 715, 2021 NY Slip Op. 21247 (Dist. Ct. Suffolk Co.), the court found that the evidence established the tenants had a second home that was available for them to occupy. While the court did not explicitly ruled that the tenant had engaged in conduct with the intent to defraud, the evidence was of that nature. There was no dispute that the tenant had a second home that was available for their occupancy. Further, the evidence established that the intent of the tenants to remain in the demised premises was so their children could graduate from the local high school.

Examples of fraud requiring a hearing could be the intentional falsification of information and/or documents submitted to obtain the ERAP benefits or the filing of an ERAP application with the sole intention of harassing the landlord and/or without any intention on the part of the tenant to occupy the premises. The court could also grant a judgment of possession in the event a tenant has voluntarily vacated the premises.

Petitioner's oral application on February 9, 2022 for a hearing on the eligibility of the respondents to receive ERAP benefits is denied for the reasons set forth herein. This Court does not possess the jurisdiction to make this determination absent clear and convincing evidence of fraud. Without such proof, the court can neither issue a ruling denying or granting ERAP benefits. To do so would upend a state-wide process put in place pursuant to statutory authorization.

A status conference is set for April 13, 2022 at 10:30 a.m."

Monday, March 14, 2022

ERAP AND STAYS IN HOLDOVER - ONE VIEW


ACTIE v. Gregory, 2022 NY Slip Op 50117 - NY: City Court, Civil Court 2022:

"This is a holdover proceeding in an unregulated unit where Petitioner seeks possession of the premises. Respondent filed an ERAP application and Petitioner moves to vacate the automatic ERAP stay imposed by Chapter 417(A)(B3) of Chapter 56 of the laws of 2021. In this matter Petitioner was notified that an ERAP application was submitted by respondent Tawana Gregory, a tenant who has vacated since the filing of the application, and of the stay provided pursuant to the statute that remains in place pending a determination of the ERAP application. Kawan Mack, an undertenant named in the petition, remains in possession of the premises and opposes Petitioner's motion challenging the stay and seeking its vacatur. Mack asserts that "there is nothing in the four corners of the statute" that permits a challenge to the automatic stay that is triggered when an individual files an ERAP application and that petitioner's motion is somehow "inappropriate and thus should be automatically denied."

In support of his motion, Petitioner argues that the automatic ERAP stay is a due process violation akin to the stay discussed in Chrysafis v. Marks, Sup. Ct., U.S., S.Ct., L.Ed.2d, 2021 WL 3560766 (8-12-21), where the United States Supreme Court found that a tenant's ability to self-certify financial hardship and unilaterally stay a proceeding via the filing of a Hardship Declaration ultimately led to the decision that fully enjoined Part A of CEEFPA and prompted the legislature to revise that statute to permit a challenge to a Hardship Declaration. Here, with ERAP, there is no substantive or meaningful distinction in the mechanics or logistics of how ERAP works and how CEFFPA worked prior to the Chrysafis decision.

Pursuant to Chapter 417(A)(B3) of Chapter 56 of the laws of 2021, once a tenant or occupant files an ERAP application, the proceeding is stayed with limited exceptions enumerated by the statute and the case remains stayed until a determination of the application is made. The statute provides no mechanism for a challenge to the stay and there appears to be either indefinite or inchoate timeframes within which an application must or may be processed. If a petitioner is precluded from challenging the stay, the outcome is the same as existed with CEEFPA prior to Chrysafis, supra. An occupant may file an ERAP application, whether eligible or not, an intended beneficiary of the program or not, in good faith or bad, and significantly where the outcome will not result in the preservation of a tenancy. In this scenario the occupant will have unilaterally invoked a stay while precluding the petitioner in the action from engagement or participation in the process to which they are a party. This is the outcome that influenced the decision in Chrysafis, supra, where the Court enjoined the enforcement of Part A of CEEFPA.

CPLR Section 2201 provides "[e]xcept where otherwise proscribed by law, the court in which an action is pending may grant a stay of proceedings in a proper case, upon such terms as are just." In the ordinary course of a proceeding a court has significant discretion as to whether, when and upon what terms this typically interim form of relief may be granted. Traditionally the individual seeking a stay has the burden of demonstrating why it should be granted and while it is commonly and permissibly sought ex parte and may in some instances be automatically triggered, the party opposing the application is entitled to a hearing on its merits. While the COVID-19 pandemic prompted the Legislature to enact the statute and provide this sweeping relief en masse, to deny a party-in-interest an opportunity to challenge a stay if it can demonstrate the futility of the stay in a particular context or that it should otherwise not apply, would contravene most of our legal framework and fundamental ideas of fairness.

In this matter, petitioner argues that even if the ERAP monies become available and respondents are approved, it would be a prejudicial exercise in futility to continue the stay as petitioner seeks to recover possession of the apartment for his use and for that of his immediate family. It is undisputed that the subject premises is in an unregulated residential building with four or fewer units. There is no current lease for the premises. Petitioner has notified respondents that he does not intend to and will not renew the lease. The remaining occupant, the undertenant, does not have succession rights to the premises nor any other independent possessory right or interest and resides in a unit where a termination notice has been served. Section 8(iv) of the Act provides that a landlord or property owner who accepts ERAP payment for rent or arrears "may decline to extend the lease or tenancy if the landlord intends to immediately occupy the unit for the landlord's personal use as a primary residence or the use of an immediate family member as a primary residence." This court finds it would be counterintuitive and prejudicial to preclude Petitioner from challenging an ERAP stay where approval of the application will not result in the preservation or creation of a tenancy.

In summary proceedings courts may examine the question of restoration to possession in the context of a lockout proceeding, even where a party may have been illegally locked out. The courts in the Second Department do not grant or require restoration in proceedings where restoration would be "futile." See, eg. Bernstein v. Rozenbaum, 20 Misc 3d 128(A), AT, 2nd Dept. 2008), Parkash 2125 LLC v. Galan, 61 Misc. 502, 84 NYS3d 724, 2018 NY Slip. Op. 28273 (Civ Ct. Bronx County 2018) and Cordova v. 1217 Bedford Realty LLC, 67 Misc 3d 1206(A) (Civ Ct Kings 2020). Here, under the specific facts of this case, even if respondents' ERAP application is approved and petitioner accepted the funds, the payment of funds through the ERAP program would not reinstate the landlord-tenant relationship. Consequently, allowing the stay to continue is an exercise in futility and prejudicial to petitioner.

Based on the foregoing, the Court grants petitioner's motion to the extent of vacating the ERAP stay. The matter will be restored to the Calendar for a conference on the merits. The clerk will notify the parties of the date and time."

Friday, September 24, 2021

THE ACTUAL DECISION


If you read the recent story of the Long Island man who hasn’t paid his mortgage in 23 years, here is the recent decision that was in the news.

Diamond Ridge Partners LLC v. Hanspal, Date filed: 2021-09-14, Court: District Court, Nassau, Judge: Judge William Hohauser, Case Number: LT-6528/17:

DECISION ON MOTION

A. Procedural History and Statement of Facts In or about 1998, respondent Guramit Hanspal (“Hanspal”) purchased the property located at 2468 Kenmore Street, East Meadow, NY 11554 (“Kenmore Street”), and obtained a mortgage loan in order to finance this purchase. Following Hanspal’s almost simultaneous default on payment of the mortgage note, in May 2000 the original mortgagee obtained a judgment of foreclosure and sale in Nassau County Supreme Court. In 2011, and then again in 2018, the then-Petitioners obtained judgments of possession against Hanspal in February 2011 and in April 2018.1 During the interim period, apparently in an effort to forestall entry and/or enforcement of the judgments of possession. Hanspal filed at least six (6) bankruptcy petitions, all of which were dismissed. Undeterred by these dismissals or either judgment of eviction. Hanspal filed another bankruptcy petition in 2019. which too was dismissed. In addition. Hanspal has filed numerous other complaints against Petitioner (or its predecessors in interest), both in federal and state courts, each of which has been dismissed.2 During 2019, another purported Kenmore Street occupant (but not “tenant,” as the term is legally defined), a Boss Chawla (“Chawla”), filed multiple bankruptcy petitions during 2019 alone, also ostensibly to remain in possession of the Kenmore Street premises to which he had no discernabie legal right of possession. Like each of Hanspal’s petitions before, Chawla’s petitions were dismissed outright. Chawla has at no time provided any evidence that he is a lawful occupant of the Kenmore Street premises. Similarly, respondent Bhagwant Srichawla (“Srichawla”) also has not provided any evidence that he is a lawful occupant of Kenmore Street.3 Respondent Paur has not made any appearance in this matter, to any extent.

Following the dismissal of the myriad bankruptcy petitions, Hanspal filed a second motion to vacate the 2018 judgment of this Court which granted possession to Petitioner. As the Court then aptly opined:

Respondent has failed to justify his default for [not] appearing at trial…. Respondent had the opportunity to attend the trial and present his evidence…. Respondent lost the foregoing opportunity by defaulting at the trial. This history of this case going on for approximately 20 years must come to an end…”

Apparently, Hanspal did not appreciate the irony inherent in his failure to appear on his motion to vacate a default for his non-appearance. Nevertheless, in November 2020, Hanspal filed another Order to Show Cause for rehearing; this too was denied, again for Hanspal’s failure to appear

As this matter continued winding its serpentine meandering through the state and federal court systems, in April 2021 respondents Hanspal and Srichawla submitted “Tenant’s Declaration of Hardship During the COVID-19 Pandemic” (“Covid Declaration”), filed pursuant to the COVID 19-Emergency Eviction and Foreclosure Prevention Act [L 2020, ch 382] (“CEEFPA”).. On each such Covid Declaration, Hanspal and Srichawla checked only Box “A,” indicating that they sustained only financial hardship during the pandemic period. Further, neither Hanspal nor Srichawla noted the location at which they resided pursuant to any defined financial obligation. This case comes before this Court upon Diamond Ridge’s motion to invalidate the Covid Declarations filed by Hanspal and Srichawla.4

This matter was presented for oral argument on August 5, 2021, at which time Diamond Ridge presented testimony from Mr. Max Sold, a former representative, who testified, among other assertions, that none of the individual respondents had a leasehold / ownership interest, or had made payments of any kind, including for use & occupancy, since Diamond Ridge acceded to ownership of Kenmore Street.5 Although counsel for respondents appeared, Hanspal failed to do so, and no factual evidence was submitted in rebuttal for the Court’s consideration.6

B Legal Analysis

In addressing the issue of whether the instant Respondents qualify as “tenants” or “lawful occupants,” a “tenant” may be defined as “one who holds or possesses [premises] by any kind of right or title…. [or] one who has the temporary use and occupation of real property owned by another person (called the landlord’), the duration and terms of [the] tenancy being usually fixed by an instrument called a “lease” Blacks Law Dictionary, 11th Ed. Courts defining the scope of “tenant” as contemplated by CEEFPA generally have been “intentionally expansive,” Tzifil Realty Corp. v. Mazrekaj, 2021 NY Misc. LEXIS 3438 (Kings Co. 2021). As a result, courts have “qualified” an individual asserting a colorable succession claim (The Realty Enter LLC v. Williams. 2021 NYLJ LEXIS 360 (Civ.Ct. Queens Co. 2021, Index No 53712/18), a terminated superintendent (Mazrekaj. supra), an occupant liable for paying use and occupancy (Silverstein v. Huebner. 2021 NY Misc. LEXIS 4268 (Civ. Ct. Kings Co 2021)).

In this regard, “lawful occupant” has been described as a “component” of the definition of “tenant.” CIT Bank, N.A. v. Schiffman, 36 NY3d 550 (2021). In ascertaining the legislative intent, Court turns to the prefatory paragraphs of CEEFPA, which include: “It is, therefore, the intent of this legislation to avoid as many evictions as possible for people experiencing a financial hardship during the COVID-19 pandemic…. [a] limited, temporary stay is necessary….” L.202, ch 381,§3. However, the specific stay provisions of CEEFPA limit its protections to “tenants,” as defined in the statute, but not to other classes of respondents in eviction proceedings Given the differing usages within the confines of CEEFPA, the Court must consider that the state legislature deliberately limited the umbra of CEEFPA-protected parties. See in re Warren A., 53 AD2d 400 (2d Dept 1976).

Furthermore, given the relative recency of CEEFPA, there is scant case law addressing the issue of whether the mere filing of Covid Declaration presents an absolute bar to a landlord from proceeding with an eviction. However, in a recent instructive decision from Suffolk County, that Court cited to the plain language of the Covid Declaration, to the effect that the COVID declaration would be effective if and only if it was filed by a “person responsible for paying rent…. or any other financial obligation under a lease or tenancy agreement” Accordingly, the protections of the Covid Declaration would inhere to tenants, but not to those who have no financial obligation, such as holdover tenants following a foreclosure, who at most could be considered occupants at “sufferance,” if not outright squatters. Bibow v. Bibow, LT-466-19 (Dist. Ct. Suffolk Co. July 28, 2021).

Continuing, the Bibow court was quite prescient in its analysis, opining further that by not providing the landlord with the ability to challenge the validity of the Covid Declaration, that portion of the enabling statute was violative of the landlord’s due process rights. Citing to Mullane v. Central Hanover Bank, 339 U.S. 306 (1950), the Court found that the landlord was denied the most basic opportunity to be heard. As the Bibow court reasoned, “it would be incomprehensible to find that the [state] legislature would vitiate the constitutional premise of due process to allow a party to obtain a unilateral stay of eviction without resort to a judicial forum to hear the landlord’s assertion of a ‘standing’ objection to the same.”7 See also Southern Acquisition Co. LLC v. TNT. LLC. 71 Misc. 3d 1002; 2021 Slip Op 21804 (Sup Ct. Ulster Co. 2021).8

Approximately two weeks following the Bibow decision, the United States Supreme Court issued its decision in Chrysafis v. Marks, 2021 U.S. LEXIS 2635 There, the Supreme Court specifically enjoined enforcement of only Part A of CEEFPA, finding that allowing a tenant to self-certify financial hardship and precluding a landlord from contesting that hardship, violates the “Court’s longstanding teaching that ordinarily ‘no man can be a judge in his own case’ consistent with the Due Process Clause,” citing In re Murchison, 349 U.S. 133, 136 (1955). Since the plain language of CEEFPA did not provide a landlord with such ability to challenge a tenant’s self-certification of financial hardship, the Supreme Court invalidated any COVID Declaration relying on Part A alone.9

C. Conclusion

Although the salutary import of CEEFPA and related statutes cannot be denied, the legislative history is clear that their enaction derived from a unique pandemic afflicting the state, commencing in late 2019. The various moratoria on eviction proceedings were designed to prevent undue hardships befalling on those harmed by the pandemic’s pervasive impact. Just as clearly, CEEFPA and related statutes were not promulgated to serve as a mechanism to delay further the administration of justice in cases, such as this, pending for decades.10

Here, none of the respondents qualifies for CEEFPA protection either as a “tenant” or, alternatively, as a “lawful occupant” owing any financial obligation to Petitioner, be it called rent or use and occupancy.11 If anything. Respondents behavior, which reflect no payments of any kind for decades, augurs strongly against any protection under the CEEFPA statute, as this could not be considered a temporary issue warranting interim protection.12

Accordingly, in order to forestall any further delays, the Court re-issues a judgment of possession and warrant of eviction, without stay.

Dated: September 14, 2021

Footnotes

1. In December 2018, this Court granted Diamond Ridge's application to be substituted as Petitioner in this matter.

2. On at least one such occasion, Hanspal has been the subject of a sanctions award as a result of what that Court termed frivolous conduct in prolonging this matter

3. The Court has been made aware that prior to argument on this motion, respondent Srichawla tragically was fatally injured in an automobile accident. As a result, the balance of this opinion primarily relates to respondent Hanspal.

4. Consistent with prior action (or more appropriately, inaction), respondent Paur has not filed a Covid Declaration.

5. Diamond Ridge obtained ownership of Kenmore Street after purchasing the underlying mortgage note in or about 2018, and was properly substituted on motion as Petitioner in this matter.

6. At argument counsel for Srichawia maintained that in light of Srichawla's demise, his estate must be joined as an indispensable party, citing to Watersview Owners, Inc., v. Pacimeo, 13 Misc 3d 130(A) (App. Term 2nd & 11th Dists 2006) and Ryerson Towers, Inc. v. Estate of Laura Brown, 160 Misc 2d 107 (App Term 2nd & 11th Dists. 1994) in support thereof However, each case is distinguishable from the instant situation. Ryerson involved Mitchell-Lama housing and a proceeding brought following the issuance of a certificate of eviction after the tenant had passed away in Watersview supra, the issue revolved around a proceeding against a cooperative lessee, who clearly possessed a tenancy interest. The Court finds neither case persuasive in this matter in which no tenancy has been proven.

7. In a parallel to the case at bar, the Bibow court noted that the person filing the Covid Declaration failed to appear at the hearing.

8. For a more fulsome description of the divination of legislative intent vis-a-vis occupants see Kalikow Family Partnership. L P. v. Doe, 2021 N.Y. Misc LEXIS 4310 (Civ Ct Queens Co 2021), in which the Court determined that the operative use of "tenant," rather than "respondent" within the relevant section of CEEFPA was quite significant and in that matter, held that licensees were not 'lawful occupants" and thus not tenants entitled to protection under the CEEFPA.

9. Of necessity, this decision does not implicate the protections afforded by the Tenant Safe Harbor Act ("THSA") 2020 N.Y. Laws Ch 127, §§1. 2{2)(a) The THSA affords protections to residential tenants facing eviction for non-payment of rent between March 2020 and the expiration or rescindment of Executive Orders pertaining to Covid-19 relating restrictions Those protections do not apply in holdover proceedings, such as that at bar.

10. With some dismay, the Court notes Srichawla's contention that Diamond Ridge "has (advanced) no real reason why it should be in front of all other landlords in evicting Respondents." in that Diamond Ridge and its predecessors have been waiting for more than two decades.

11. Not only does Hanspal possess no leasehold interest, but he has been subject to two adverse judgments of possession in this matter's long history.

12. While this motion was sub judice, the on September 1 2021 New York State Legislature passed an extension/modification to CEEFPA S50001 which seeks to remedy the deficiency found in CEEFPA with regards to the perceived inability of a landlord to challenge a tenants self-certification of financial hardship Given that this Court finds that the instant Respondents fail to qualify either as "tenants" or "lawful occupants" within the meaning of CEEFPA or its recent modification, the Counrt further concludes that the protections included in the most current iteration of the moratorium do not inure to respondents benefit."


Wednesday, February 17, 2021

NEW RULES RE: FAMILY EVICTIONS?


ALONI v. Oliver, 2021 NY Slip Op 50069 - NY: Appellate Term, 1st Dept. January 29, 2021:


"Petitioner's motion for summary judgment of possession should have been granted. The summary judgment record conclusively establishes that respondent was a licensee whose license to occupy the cooperative apartment he shared with petitioner, the sole proprietary lessee, was revoked by petitioner (see RPAPL 713[7]). No issue of fact was raised by respondent as to whether he had any possessory interest in the premises or any right to continued occupancy.

Contrary to the conclusion below, no issue of fact was raised as to respondent's purported "status as a family member or. . . licensee." Even accepting respondent's contention that he and petitioner resided together in the apartment in a family-like "romantic relationship," a licensee proceeding pursuant to RPAPL 713(7) is properly maintainable against respondent. The RPAPL contains no language exempting individuals with some familial relationship to a petitioner from eviction as licensees (see Heckman v Heckman, 55 Misc 3d 86 [App Term, 2nd Dept, 9th & 10th Jud Dists 2017]; see also Tausik v Tausik, 11 AD2d 144 [1960], affd 9 NY2d 664 [1961] [interpreting Civil Practice Act § 1411(8)]), and courts should not engraft such an exception into the statute "where none exists" (McKinney's Cons Laws of NY, Book 1, Statutes, § 76, Comment at 168 [1971 ed]).

Rosenstiel v Rosenstiel (20 AD2d 71 [1963]), which involved a summary licensee proceeding by a husband to remove his wife from the marital home, does not warrant a contrary result. In that case, the court held that the wife was not a licensee, i.e. one whose rights exist "by virtue of the `permission' of her husband or under a `personal' and `revocable privilege' extended by him" (20 AD2d at 76). Rather, the wife's rights "exist[] because of special rights incidental to the marriage contract and relationship" pursuant to which the husband has the obligation to maintain "a home or housing for the wife" (id at 77).

In the present case, however, although respondent initially claimed that he was the spouse of petitioner, an order rendered in a related action between the parties held that there was no legal marriage between petitioner and respondent, and that respondent has no right to support, maintenance, equitable distribution or exclusive use of the subject apartment (see Oliver v Aloni, Sup Ct, NY County, January 24, 2020, Sattler, J., index No. 350001/19). Thus, Rosenstiel is distinguishable. Moreover, Rosenstiel does not otherwise compel or suggest that a licensee proceeding cannot be maintained against a family member other than a spouse "whose rights as such have not been annulled or modified by any court decree or special agreement" (Rosenstiel at 73; see Young v Carruth, 89 AD2d 466 [1982]; Halaby v Halaby, 44 AD2d 495 [1974]; Tausik v Tausik, 11 AD2d 144 [1960]; Heckman v Heckman, 55 Misc 3d 86).

Braschi v Stahl Assoc. Co. (74 NY2d 201 [1989]) is inapplicable to the particular facts of this case. Braschi extended statutory rights to succeed to rent regulated apartments, which were held by family members, to nontraditional family members (see East 10th St. Assoc. v Estate of Goldstein, 154 AD2d 142, 145 [1990]). Manifestly, Braschi applies to cases commenced by a landlord against a remaining family member of a rent regulated apartment who seeks succession rights, and not to cases between a lessee and another occupant of the apartment (see Heckman v Heckman, 55 Misc 3d 86). "The expansive definition of family set forth in Braschi . . . has no bearing on interpreting different statutes with different statutory purposes" (Preferred Mut. Ins. Co. v Pine, 44 AD3d 636, 640 [2007]; see Raum v Restaurant Assoc., 252 AD2d 369, 370 [1998]), such as RPAPL 713(7).

Nor do we perceive any policy reason to deprive petitioner of the right to commence a statutory summary proceeding. The remedy provided by article 7 of the Real Property Actions and Proceedings Law was designed to be a "simple, expeditious and inexpensive means of regaining possession of his premises" (Metropolitan Life Ins. Co. v Carroll, 43 Misc 2d 639, 640 [App Term, 1st Dept 1964], quoting Reich v Cochran, 201 NY 450, 454 [1911]), with Civil Court as the preferred forum for resolution of such disputes (see Waterside Plaza v Yasinskaya, 306 AD2d 138 [2003]). These objectives are served by permitting petitioner to maintain "the modern and generally more satisfactory summary proceeding" (Young v Carruth, 89 AD2d at 469) to remove respondent from the premises, rather than relegating petitioner to the more cumbersome Supreme Court ejectment action. Summary proceedings "should not be so hypercritically restricted as to destroy the very remedy which they are designed to afford" (Reich, 201 NY 455)."

Thursday, February 11, 2021

RETROACTIVE EFFECT OF HOUSING STABILITY AND TENANT PROTECTION ACT


 LANGDOC v. Warden, 2021 NY Slip Op 21009 - NY: City Court, Cohoes January 25, 2021:

"The tenants took possession of the apartment on November 15, 2018. The lease, by its terms, created a month to month tenancy. Further, the lease provided either party could terminate the lease upon thirty days' written notice. On or about May 29, 2020, the landlord served the tenants with a notice to vacate the apartment by July 1, 2020. The notice was sufficient under the terms of the lease. However, the tenants refused to vacate. In turn, the landlord commenced a holdover proceeding (RPAPL 711[1]).

Tenants have moved to dismiss the Petition. They say that while the thirty-day notice was sufficient under the lease (and it was), the notice was insufficient as a matter of law (Real Property Law ["RPL"] § 226-c). RPL 226-c[1] governs the notice a landlord must provide in situations where "the landlord does not intend to renew the tenancy. . . ." The length of the required notice is set forth in RPL 226-c[2]. As here, where "the tenant has occupied the unit for more than one year but less than two years. . . the landlord [must] provide at least sixty days' notice" to the tenants to vacate (RPL 226-c[2][c]).

This much is clear, the thirty-day notice failed to comply with the required statutory notice. However, before the enactment of RPL 226-c, the parties had agreed that a thirty-day notice would suffice to end the tenancy. So, the initial question is whether RPL 226-c can reach back and alter an established contractual relationship between the parties. The general rule is that a civil statute does not have retroactive effect. "[S]ince the beginning of the Republic and indeed since the early days of the common law: absent specific indication to the contrary, the operation of nonpenal legislation is prospective only" (Kaiser Aluminum & Chem. Corp. v. Bonjorno, 494 US 827, 841-42 [1990] [Scalia, J. concurring]. The reason for such a presumption is simple—people should be able to order their lives and make transactions in reliance on the law. Legal changes always come, but change must not cause instability. Stability stems from people's faith that an arrangement consummated one day will not be undone the next by a new act of the legislature.

The Court of Appeals has developed an approach to retroactivity that seizes upon the legal stability founded in settled expectations. As the Court noted, in some instances, the application of a new statute to conduct that has already occurred may not necessarily upset people's reliance interests (Regina Metro. Co., LLC v. New York State Div. of Hous. & Community Renewal, 35 NY3d 332, 365 [2020]). Thus, a statute should not have retroactive effect "if it would impair rights [that] a party possessed when he acted, increase a party's liability for past conduct, or impose new duties with respect to transactions already completed" (Id [internal citations and quotations omitted]). In contrast, "a statute that affects only the propriety of prospective relief or the nonsubstantive provisions governing the procedure for adjudication of a claim going forward has no potentially problematic retroactive effect." (Id at 365-66 [internal citations and quotations omitted]).

To begin with, there is no question that the timing to reassert possession and prevent a tenant from holding over (or allowing a tenant to quit the lease without additional rent) is a fundamental component that defines and creates a property right (see Carlo v. Koch-Matthews, 53 Misc 3d 466, 471-472 [City Ct 2016] [reviewing historical underpinnings of month to month tenancy]). Consequently, if RPL 226-c is read to void the lease's notice provision, it voids a property right and its retroactive application would be problematic. This is because the landlord can only terminate a tenancy upon service of an adequate notice and if the thirty-day notice is invalid, then the tenants' property interest never ended (Anderson v Prindle, 23 Wend 616, 619 [1840]; Sills v. Dellavalle, 9 AD3d 561 [3d Dept 2004]). In other words, in a void notice situation, the tenants' possessory interest in the premises continues until a new and proper notice is served to terminate and extinguish that interest. Therefore, if the landlord's thirty-day notice is void, then the court would have to dismiss this holdover proceeding because the landlord has no right to claim possession of the premises (Chinatown Apartments, Inc. v. Chu Cho Lam, 51 NY2d 786, 788 [1980]).

However, the court does not read RPL 226-c to invalidate a notice that fails to comply with its mandate. On this point, the statutory language is clear: "[i]f the landlord fails to provide timely notice, the occupant's lawful tenancy shall continue from the date on which the landlord gave actual written notice until the [statutory] notice period [as defined in RPL 226-c[2][a-c]] expire[s]" (RPL 226-c[1] [emphasis added]). Thus, a notice that fails to comply with RPL 226-c is not void and nothing in the statutory scheme requires the landlord to serve the tenants with a new notice to vacate the apartment. Rather, RPL 226-c extends the tenancy for a period to match the notice required by statute. That means the day after the required statutory notice expires, the tenant's occupation becomes illegal.

In sum, RPL 226-c does not destroy a property interest, it only makes the landlord wait before he can assert that interest in court. Thus, the court concludes that RPL 226-c "affects only the propriety of prospective relief" without disrupting the landlord's property right (Regina Metro. Co., LLC, 35 NY3d at 365). Therefore, RPL 226-c's time frames govern this case and not the lease provision, even though the parties had agreed to what would constitute proper notice prior to RPL 226-c's passage. In this case, since the tenants were served on May 29, the tenancy continued for sixty days (RPL 226-c[2][c]). After the sixty days expired (which was on July 28), the tenant's occupation became illegal and the holdover proceeding became ripe to be heard without the necessity of the landlord serving another notice to vacate upon the tenant.

This brings the case to a second timing issue. The landlord filed the Notice of Petition and the Petition on July 27. These documents were served upon the tenants August 13. Both these dates have legal significance. This holdover proceeding was commenced on the date of filing of the Notice of Petition and the Petition, which was a day before the expiration of the tenancy (UCCA 400[1]). However, the court obtained jurisdiction over the tenant upon the service of the papers which occurred after the expiration of the tenancy (UCCA 400[2]). This means that the holdover proceeding was premature at the time of filing but ripe at the time of service. Which time controls, all the difference makes.

The outcome of the case turns upon when the holdover proceeding is considered commenced. Determining a commencement date for a special proceeding is murky business and context dependent. "[T]he question of when a summary proceeding is `commenced' must be answered differently, in this context and others, depending on the context in which the question arises" (92 Bergenbrooklyn, LLC v. Cisarano, 50 Misc 3d 21, 24 [App Term, 2d, 11th & 13th Jud Dists 2015]).

Here, service represents the critical moment in a holdover action. Indeed, the law provides for the initiation of a holdover proceeding via Order to Show Cause "on the day of the expiration of the lease" (RPAPL 733)—which means that a holdover proceeding technically can be commenced in anticipation of a tenant holding over. This lends support to the proposition that service of the Petition rather than its filing is the key to determine ripeness. After all, it is the service of the Petition, not its filing, that places the tenant under legal compulsion to respond. Therefore, the court holds that commencement occurs upon service for the purposes of determining ripeness in the context of a notice to quit.[1]

Accordingly, the court concludes that if on the day of service, the tenant still has possessory interest in the premises because the notice to quit has yet to expire, then the case has been brought prematurely and must be dismissed. In contrast, if on the day that the Petition is served, the landlord has possessory interest, then the case has matured and should not be dismissed. Here, the date of service was after the expiration of the notice to quit, thus the landlord has the prima facia right of possession. Thus, the landlord's holdover proceeding is ripe to adjudicate and the tenants' motion to dismiss is denied.

Finally, the landlord commenced this proceeding prior to the effective date of the Emergency Eviction and Foreclosure Prevention Act ("EEFPA") (C 381, L 2020). Section 2 of the EEFPA directs that all such proceedings be stayed for a period of at least sixty days from December 29, 2020. Therefore, the court will stay this proceeding until March 1, 2021 at 9:30 a.m., at which time the court will hold a conference. Parties may appear virtually.

The forgoing constitutes the Decision and Order of the court.

[1] Moreover, the court's reasoning is in accord with analogous situations. For example, the commencement of a hold over proceeding is determined from the date of service (rather than the date of filing) in applying the rule that the landlord's acceptance of rent from a tenant before commencing a holdover proceeding voids the proceeding (92 Bergenbrooklyn, LLC, 50 Misc 3d at 24-25)."


Tuesday, October 13, 2020

RESUMPTION OF EVICTIONS BEGAN YESTERDAY



Effective October 12, 2020, all residential eviction matters - nonpayment and holdover, without regard to the date of commencement - may resume statewide, with certain important caveats which are set forth in this link: Revised Procedure for Addressing Residential Eviction Proceedings

 AO/231/20 (stated below) amends the protocol for handling residential eviction proceedings.

ADMINISTRATIVE ORDER OF THE CHIEF ADMINISTRATIVE JUDGE OF THE COURTS 

Pursuant to the authority vested in me, at the direction of the Chief Judge, and consistent with the Governor's determination approving the easing of restrictions on commerce imposed due to the COVID-19 health emergency, I hereby direct that, effective October 12, 2020: terms. 

1. Resumption of Residential Eviction Matters: All residential eviction matters, both nonpayment and holdover, may proceed in the normal course, subject to ( 1) current or future federal and state emergency relief provisions governing time limits for the commencement and prosecution of matters, limitation of eviction-related remedies, and similar issues, and (2) individual court scheduling requirements occasioned by health and safety concerns arising from the coronavirus health emergency. 

2. Residential Eviction Matters Commenced Prior to March 17, 2020: The conference requirement applicable to residential eviction matters commenced prior to March 17, 2020, set forth in AO/160A/20, shall continue for those matters. 

3. Filing and Service: Filing and service of process in eviction proceedings shall continue as set forth in Administrative Order AO/121/20. 

4. Notice to Respondent Tenant: Petitions in eviction proceedings pursuant to Article 7 of the Real Property Actions and Proceedings Law shall include a Notice to Respondent Tenant in the form attached as Exh. la (if filing within the City of New York) or Exh. lb (if filing outside the City of New York). 

5. Remote Proceedings: Eviction proceedings should be conducted remotely whenever appropriate. 

6. Alternative Dispute Resolution: Mediation and other forms of alternative dispute resolution are encouraged, particularly in matters where (1) all parties are represented by counsel, or (2) all parties are unrepresented by counsel. 

This order supersedes the provisions of any other Administrative Order inconsistent with its 

Dated: October 9, 2020 

AO/231/20

Thursday, January 9, 2020

EVICTION OF SENIOR CITIZEN/HOARDER FROM CO-OP



The building involved is one of the Lincoln Towers residential buildings by Lincoln Center. The unit must be at least $500K value with maintenance charges of over $1200 a month. This is a sad story that has been in the court system for several years.

140 W. End Ave. Owners v. Dinah L., NYLJ January 08, 2020,  Date filed: 2019-11-26, Court: Civil Court, New York, Judge: Judge Lillian Wan, Case Number: 73825/2017:



"In this nuisance holdover proceeding, the Court held a trial to determine whether the respondent-tenant created a nuisance condition in her apartment in violation of the proprietary lease, thereby entitling the petitioner-landlord to a final judgment of possession and warrant of eviction. For the reasons set forth below, the Court finds that the petitioner established a prima facie case of nuisance and is entitled to a judgment of possession and warrant of eviction. However, execution of the warrant shall be stayed for 90 days to allow the respondent an opportunity to further cure the condition or to relocate to another dwelling. The respondent-tenant, Dinah L. (hereinafter respondent), who is 72 years old, currently occupies Apartment 12V at 140 West End Avenue in Manhattan, a cooperative apartment where she has lived for over 10 years. In a Thirty (30) Day Notice to Cure dated May 12, 2017, petitioner-landlord 140 West End Avenue Owners Corp. (hereinafter petitioner) alleged that respondent engaged in behavior that violated paragraphs 13, 18(b), 20, and 25 of the proprietary lease, resulting in a failure to meet the substantial obligations of her tenancy. Petitioner alleged that respondent kept her apartment in poor condition by amassing clutter in the form of garbage, books, and newspapers, which resulted in infestation, unreasonable odors, and an increased risk of fire hazard. In a Notice of Termination dated July 28, 2017, petitioner alleged that these violations had not been cured and directed respondent to surrender possession of the premises. Petitioner commenced the instant nuisance holdover action on September 12, 2017.

On June 12, 2018, the New York City Department of Social Services filed a petition pursuant to Article 81 of the Mental Hygiene Law (hereinafter MHL) seeking the appointment of a guardian for Ms. L. On July 5, 2018, the Hon. Shawn T. Kelly appointed Selfhelp Community Services, Inc. (hereinafter Selfhelp) as temporary guardian of Ms. L. and granted Selfhelp the authority to access Ms. L.’s place of abode, arrange for a heavy-duty cleaning of the abode, inform her about the cleaning, and, if necessary, temporarily remove her from the premises to complete the cleaning. On August 21, 2018, Justice Kelly amended the temporary guardian order to include the powers to apply for government and private benefits, marshal and manage income and assets, determine whether Ms. L. is entitled to any additional assets, arrange for and encourage outpatient psychiatric treatment, and assist in selling and auctioning any items of value that may be in Ms. L.’s abode. After a full hearing, Justice Kelly adjudicated Ms. L. to be a person in need of a guardian and appointed Selfhelp as guardian for a period of two years. See Order and Judgment Appointing a Guardian of the Person and Property dated February 7, 2019. Justice Kelly found that Ms. L. has functional limitations that impair her ability to provide for her personal needs and property management, and that the appointment of a guardian is necessary. Selfhelp’s authority included, inter alia, defending Ms. L. in the housing court proceeding, arranging for heavy-duty cleanings of her residence, arranging for and maintaining the appropriate level of home care services, and entering into contracts subject to prior court approval.


After multiple attempts to resolve the matter, the case was set down for trial at the petitioner’s request. The trial commenced on June 27, 2019 and concluded on September 20, 2019. At the trial, the petitioner introduced witness testimony and documentary evidence of respondent’s violations of the proprietary lease. Helen Basurto, an employee of managing agent AKAM Associates, Inc., testified that strong smells of urine and garbage continued to emanate from the apartment as recently as the day before the trial commenced. Ms. Basurto further stated that respondent’s apartment is located directly across from the 12th floor elevators, making it impossible for residents and visitors of that floor to avoid the odors. Ms. Basurto stated that these odors are not present on other floors of the building. Ms. Basurto also testified that while a cleaning of the apartment occurred in October 2018, this only alleviated the odors for a few weeks.


The petitioner also presented the testimony of Robbie Persaud, a handyman employed with the subject building for the last seven years. Mr. Persaud is familiar with Ms. L. as he does yearly maintenance in her apartment. Mr. Persaud testified that he was inside the respondent’s apartment in April 2019 and on June 19, 2019 to inspect her air conditioning units. Mr. Persaud testified that he observed piles of garbage, clothing, papers, and other debris that made navigating the apartment difficult, and that there were extreme odors of urine and feces. The petitioner introduced into evidence 15 photographs taken by Mr. Persaud while inside the premises on June 19, 2019, which depict garbage and clutter strewn throughout respondent’s apartment. Mr. Persaud testified that this condition was also present when he entered the apartment on previous dates. Mr. Persaud stated that strong odors of urine have continuously emanated from the respondent’s apartment. Mr. Persaud did concede that respondent allowed him access on three previous occasions when he knocked on her door.


The petitioner also offered the testimony of Ms. L.’s neighbor, Martin Izaak, who lives in the apartment adjacent to her. Mr. Izaak testified that he is immediately able to smell pungent odors entering the 12th floor hallway and that the smell gets stronger the closer you get to Ms. L.’s apartment. Mr. Izaak further stated that the smell is there constantly and that he is concerned that the smell may cause health issues and diminish the value of his apartment. He also had concerns about inviting his friends to his apartment.


The respondent, represented by counsel to the guardian, presented the testimony of Yajaira Rincon-Brown, the Selfhelp caseworker assigned to Ms. L. Ms. Rincon-Brown testified that a heavy-duty cleaning occurred in October 2018. Ms. Rincon-Brown also testified that she did not notice a smell when she was last in Ms. L.’s apartment on July 30, 2019 and that she did not believe the apartment was cluttered, stating instead that the premises was in need of organization. The respondent introduced five photographs into evidence which were taken after the heavy-duty cleaning conducted in October 2018; however, Ms. Rincon-Brown admitted that these photographs did not reflect the current condition of the apartment.


The petitioner then called Ms. L. as a rebuttal witness. Ms. L. testified that Mr. Persaud did visit her apartment to change the filters in her air conditioning unit but she claimed he did not take photographs. Ms. L. stated that the respondent’s photographs depict the state of her apartment before it was cleaned out and that it does not look like this today. Ms. L. further testified that the current condition of her apartment is slightly different in that it is neater and furniture has been moved around. Ms. L. testified that her apartment is now much more livable and that she is able to move around freely. Petitioner also recalled Mr. Persaud as a rebuttal witness, at which time 12 additional photographs of Ms. L.’s apartment were admitted into evidence. Mr. Persaud testified that he took these photographs in August 2019 and stated that they displayed a condition similar to the one portrayed in the June 2019 photographs. Mr. Persaud also testified that the strong stench of urine and feces was again present in August 2019 and that he saw flies in the apartment.


On summation, the petitioner contends that it established its prima facie case in demonstrating that respondent breached her proprietary lease by interfering with other building residents’ use and enjoyment of their homes. The petitioner further argues that the expanded stay provision of the Housing Stability and Tenant Protection Act of 2019 (hereinafter HSTPA) does not apply to the instant proceeding, as this provision only applies to those actions and proceedings commenced on or after June 14, 2019. Petitioner also contends that the respondent is not entitled to a stay under Real Property Actions and Proceedings Law (hereinafter RPAPL) §753, arguing that a tenant is required to pay all use and occupancy currently owed to obtain a stay under this provision. Petitioner claims that even if respondent is eligible for a stay, respondent is not entitled to a post-judgment opportunity to cure and a stay of the warrant of eviction because respondent has had ample opportunity to cure during the pendency of the proceeding but has failed to do so.


Counsel for the guardian argues that the petitioner’s evidence was insufficient to establish the existence of a nuisance condition. Respondent claims that the testimony of Ms. Basurto and Mr. Izaak cannot establish a pattern of objectionable conduct because neither ever entered Ms. L.’s apartment. While respondent concedes that Mr. Persaud did enter Ms. L.’s apartment, Mr. Persaud also testified that he was able to move about the apartment and complete repairs. Respondent further argues that, in the alternative, it is entitled to an indefinite stay of the execution of the warrant of eviction pursuant to RPAPL §753(4) on the grounds that even if petitioner met its burden of demonstrating that respondent’s behavior constituted a nuisance, respondent established that any nuisance conditions that did exist have been cured.


The elements of a common-law claim for a private nuisance are an interference that is (1) substantial in nature; (2) intentional in origin; (3) unreasonable in character; (4) interfering with a person’s property right to use and enjoy land; and (5) caused by another’s conduct in acting or failure to act. Copart Indus. v. Consolidated Edison Co. of N.Y., 41 NY2d 564 (1977). The Court of Appeals has noted that not every annoyance will constitute a nuisance, and to prevail on a cause of action for nuisance, the plaintiff must establish “a pattern of continuity or recurrence of objectionable conduct.” See Domen Holding Co. v. Aranovich, 1 NY3d 117, 124 (2003), quoting Frank v. Summit Park Summit Realty Corp., 175 AD2d 33, 34 (1st Dept 1991), mod on other grounds 79 NY2d 789 (1991). In the instant matter, it is clear that Ms. L.’s failure to keep her apartment free of clutter and in a sanitary condition over the course of at least two years represents a pattern of continuity and a recurrence of objectionable conduct. The Court determined that petitioner’s witnesses testified credibly in this regard. The testimony of respondent’s witness, Ms. Rincon-Brown, was insufficient to rebut petitioner’s evidence, and is more relevant to this Court’s determination on whether a post-judgment opportunity to cure is warranted. Mr. Izaak, Ms. L.’s neighbor, testified firsthand about the odor emanating from the apartment, and about how it has negatively impacted his life. The photographs in evidence clearly depict the poor and excessively cluttered condition of Ms. L.’s apartment. Therefore, the Court finds that the petitioner has met its prima facie burden in establishing the existence of a nuisance and is entitled to a judgment of possession and issuance of a warrant of eviction.


In determining whether a stay of the execution of the warrant is appropriate, the Court must consider the fact that the respondent is an Article 81 ward of the Court. The Court notes that in arguing against a stay, the petitioner does not cite any cases that involve tenants with Article 81 guardians. Recent case law makes clear that the Court has broad discretion in determining whether a disabled tenant should be given an opportunity to cure a condition or be allowed additional time to relocate, and must consider the equities in reaching that determination.


In Matter of Prospect Union Assoc. v. DeJesus, 167 AD3d 540 (1st Dept 2018), a case involving a disabled Article 81 ward, the Appellate Division, First Department disagreed with the housing court’s determination that the tenant was not entitled to a permanent stay of eviction because the conditions in the apartment were ongoing and not timely cured. The court went on to state that there needs to be a “proper evaluation of whether the Article 81 guardian’s management of their personal (and property) affairs will now make a difference in their ability to stay in their home without harming others.” Id. at 543. The court also concluded that the appointment of an Article 81 guardian sufficiently establishes that the tenant is “handicapped” within the meaning of the Fair Housing Act, and as such “a landlord is obligated to provide a tenant with a reasonable accommodation if necessary for the tenant to keep his or her apartment.” Id. The trial court must consider whether with ongoing supportive services and monitoring, tenants can continue to live in the apartment without harming or affecting their neighbors. Id. at 544. The issue for determination is “whether, with the involvement of the [A]rticle 81 guardian and its management of their affairs, tenants can fulfill their lease obligations and avoid eviction.” Id. Furthermore, the court remanded the case for a hearing to determine whether the accommodations proposed by the guardian were reasonable, whether they would curtail the recurrence of the nuisance, and whether a permanent stay of eviction was appropriate.


Furthermore, in 642-654 Whippersnapper LLC v. Mahoney, 63 Misc3d 46 (App Term, 1st Dept 2019), the Supreme Court, Appellate Term, relying on DeJesus, also remanded the matter back to the housing court for a hearing on whether the tenant was entitled to a permanent stay of eviction as a reasonable accommodation. Mahoney involved a stipulation of settlement that was entered into by the tenant’s guardian ad litem. An Article 81 guardian was subsequently appointed, and the guardian performed a heavy-duty cleaning with extermination services, and implemented home care services to ensure that its ward had regular assistance to maintain the apartment in a sanitary condition. The court held that the circumstances were sufficient to warrant a temporary stay and remittal on the issue of a permanent stay. In noting that the First Department’s holding in DeJesus represents a clear departure from the prior approach previously taken in nuisance cases, the Mahoney court recognized that:


[w]hile the protection of the premises and the other tenants who reside therein remains paramount, serious efforts must be undertaken to examine whether such risks can be minimized to thus afford a reasonable accommodation to a physically or mentally disabled tenant, even for one whose conduct has previously been highly problematic. Id. at 49 (internal citations and quotation marks omitted), quoting Matter of Prospect Union Assoc. v. DeJesus, 167 AD3d at 543.


The Mahoney court also instructed the housing court to consider equitable principles in determining whether to provide the tenant an opportunity to cure, including assessing factors such as the tenant’s advanced age, disability, the hardship that an eviction would cause, and the tenant’s long-term tenancy of over 50 years at the subject apartment. Mahoney, 63 Misc3d at 50; see also Strata Realty Corp. v. Pena, 166 AD3d 401 (1st Dept 2018) (though respondent previously had many opportunities to cure the nuisance she had created, the tenant was granted another stay in light of her advanced age, long-term occupancy, disability, hardship that eviction would cause her, and her willingness to grant petitioner access to the apartment).


In 529 West 29th LLC v. Reyes, 63 Misc3d 65 (App Term, 1st Dept 2019), the Appellate Term, First Department affirmed the Housing Court’s determination that the tenant had a handicap under the Fair Housing Act and was thus entitled to a reasonable accommodation. The court held that a stay of the execution of the warrant of eviction for six months was an objectively reasonable accommodation. Reyes involved a tenant who had been diagnosed with schizophrenia, however the evidence established that the tenant’s condition had greatly improved as a result of an intensive hospital treatment program and social service assistance. Significantly, the court held that the determination of whether an accommodation is required is highly “fact specific,” and should be made on a case-by-case basis. The overarching guiding factor, however, is that a landlord has an obligation to provide a tenant with a reasonable accommodation, if necessary, for the tenant to remain in the apartment. Id. at 68.


In reviewing recent First Department precedent, it follows that if a tenant should have an opportunity to cure a nuisance condition, then the tenant should also be afforded the opportunity to safely relocate. In the instant matter, the Article 81 guardian recently filed a motion seeking to expand its powers in order to retain an appraiser and real estate broker to sell Ms. L.’s apartment with the intention of relocating her. On October 11, 2019, the Court granted the guardian’s motion. The factors set forth in Pena and Mahoney are not exclusive, and it is logical to presume that the need to relocate to another apartment is an appropriate factor to consider. See Beuhler 1992 Family Trust v. Longo, 63 Misc3d 508 (Civ Ct, NY County 2019) (the execution of a warrant of eviction was stayed to allow tenant to obtain relocation assistance from her Article 81 guardian).


In determining whether to allow a further stay, this Court is also guided by the HSTPA. The HSTPA has increased the protections for tenants statewide, and augments, amends, repeals and enacts provisions of a wide range of laws salient to rent regulation and landlord-tenant relations in New York. Specifically, HSTPA, 2019 Sess. Law News of N.Y. Ch. 36, pt. M, §21 (S. 6458) [McKinney's]), amends RPAPL §753(1), and allows a judge to issue a stay of eviction for up to one year where the tenant cannot secure suitable housing in the same neighborhood, or where the eviction would cause “extreme hardship.”1 Similarly, the new legislation provides an automatic 30-day stay of eviction where the eviction is based on a violation of a provision of the lease to allow the tenant an opportunity to cure the breach. The justification behind these expanded timeframes is to “allow more leniency throughout any eviction proceeding, including stays of eviction and executions of warrants; and ensure that any eviction that is executed is done so in the interest of justice.” Legis. Mem. in Support of NY State Senate Bill, 2019 Sess. Law News of NY Ch. 36 (S. 6458) [McKinney's].

In the instant matter, Ms. L. would likely suffer extreme hardship if a stay were not granted. Ms. L. is an elderly Article 81 ward of the Court who has lived in the current apartment for 10 years. Furthermore, the guardian is making good faith efforts to secure a safe, affordable dwelling for Ms. L., and it is reasonable to afford the guardian some time to do so. In the meantime, Ms. L. has allowed the landlord to have access to her apartment and has cooperated with the guardian’s efforts to keep the apartment clean and free of clutter.


The Court declines to condition any stay upon the payment of use and occupancy. The language of RPAPL §753(2) clearly gives the Court discretion to determine what amount of ongoing use and occupancy, if any, will be paid: “the amount of such deposit shall be determined by the court upon the application for the stay,” including in “installments thereof from time to time as the court may direct, for the occupation of the premises for the period of the stay.” In fact, with regard to past due rent or maintenance, a deposit made pursuant to the statute “may also include all rent unpaid by the occupant prior to the period of the stay.” RPAPL §753(2) (emphasis added). Notably, in Tessler v. Tessler, 81 AD3d 408 (1st Dept 2011), the Appellate Division, First Department found that the trial court acted within its discretion by taking respondent’s limited financial resources into account when denying an award of an additional amount of use and occupancy permitted by RPAPL §753(2).


In 326-330 East 35th Street Assoc. v. Sofizade, 191 Misc2d 329 (App Term, 1st Dept 2002), the Appellate Term, First Department noted that circumstances may exist that warrant the issuance of a stay of a possessory judgment “upon such terms as may be just” pursuant to CPLR 2201 in order to avoid a leasehold forfeiture in a holdover proceeding. While there is no “bright-line standard” for determining the appropriateness of a discretionary stay, factors to be considered include the length of the tenancy, the tenant’s payment history, the circumstances and severity of the rent defaults, and the tenant’s present financial status. Id. at 332. Ms. L. does not appear to have the financial means to afford maintenance payments, which is in part why the Article 81 guardian has obtained an expansion of powers to sell the co-op and relocate Ms. L. to a home that she can afford. Significantly, the Court notes that Paragraph 32(c) of the proprietary lease allows for the petitioner to collect on any debt owed pursuant to the sale of a tenant’s shares. It follows that once the apartment is sold, the petitioner can be reimbursed for all maintenance due from the proceeds of the sale.


Equity would not be served with the immediate execution of a warrant of eviction. Accordingly, based on the foregoing, the petitioner is entitled to a final judgment of possession and warrant of eviction. However, after a careful review of the facts and circumstances of this case, and upon balancing all of the equities, the execution of the warrant is stayed for 90 days to allow the guardian time to sell Ms. L.’s apartment and relocate her to a suitable environment or, in the alternative, to allow the guardian an opportunity to cure the nuisance condition without prejudice to the guardian to seek a further stay upon a showing of good cause. Upon expiration of the stay, if the condition is cured, and the respondent should remain in possession of the apartment, petitioner may commence a non-payment proceeding for any unpaid maintenance. See Novak v. Fischbein, Olivieri Rozenholc & Badillo, 151 AD2d 296 (1st Dept 1989).


IT IS HEREBY ORDERED, that a final judgment of possession and warrant of eviction shall issue in favor of the petitioner; and it is further


ORDERED, that execution of the warrant of eviction is stayed for 90 days to allow the guardian time to sell Ms. L.’s apartment and relocate her to a suitable environment or, in the alternative, to allow the guardian an opportunity to cure the nuisance condition, without prejudice to the guardian to seek a further stay upon a showing of good cause.


This constitutes the decision and order of the Court.


Dated: November 26, 2019


Footnotes



1. The prior statute allowed a stay for up to six months but also contained the "extreme hardship" provision."

Thursday, May 3, 2018

NEW RULES - POST FORECLOSURE SUMMARY PROCEEDING



PLOTCH v. Dellis, 2018 NY Slip Op 28116 - NY: Appellate Term, 2nd Dept. 2018:

In Home Loan Servs., Inc. v Moskowitz (31 Misc 3d 37 [App Term, 2d Dept, 2d, 11th & 13th Jud Dists 2011]), this court held that attaching a certified copy of the referee's deed to the notice to quit did not satisfy the requirement of RPAPL 713 (5) that the deed be exhibited to the respondent, where the notice to quit was served by conspicuous-place service. Petitioner here, in effect, asks this court to reconsider this ruling, arguing, among other things, that the exhibition requirement dates from the time that the statute required exhibition of the original deed and that, under the language subsequently added to the statute permitting exhibition of a certified copy of the deed, service of such a certified copy by means other than personal delivery should suffice.

Upon reconsideration, this court agrees with petitioner's contention. Civil Practice Act § 1411 (6) required the exhibition to the respondent of an original referee's deed, and this requirement was carried over when the Civil Practice Act provision was replaced in 1962 by RPAPL 713 (5). However, in 1976 (L 1976, ch 642), because of the difficulties attendant in exhibiting an original deed, and in response to the decision in Rome v White (82 Misc 2d 356 [Civ Ct, NY County 1975]) disallowing exhibition of a photostatic copy of the deed (see Sponsor's Mem, Bill Jacket, L 1976, ch 642), the legislature amended RPAPL 713 (5) to permit, in addition to exhibition of an original deed, exhibition of a certified copy of the deed. We are persuaded that service by means other than personal delivery of a certified copy of the deed, i.e., service of a certified copy of the deed which is left at the premises for the respondent to retain and examine, satisfies the exhibition requirement.

Tuesday, January 9, 2018

COMMERCIAL FORECLOSURE - COMMERCIAL LEASE ENTERED AFTER NOTICE OF PENDENCY



BH 2628, LLC v. ZULLY'S BUBBLES LAUNDROMAT, INC., 2017 NY Slip Op 27319 - NY: Appellate Term, 2nd Dept. 2017:

"In this summary proceeding commenced pursuant to RPAPL 713 (5) by a purchaser in foreclosure, petitioner appeals from a final judgment which, after a nonjury trial, dismissed the petition. The Civil Court found that landlord had failed to prove its case, as occupant had a valid lease and had not been named in the foreclosure action. The court held, accordingly, that occupant was not bound by the judgment of foreclosure.

As the lease with the former owner upon which occupant's defense to this proceeding is based was signed several months after a notice of pendency had been filed in connection with the foreclosure action, occupant was, contrary to the Civil Court's holding, bound by the judgment of foreclosure (see CPLR 6501) and the lease was voidable by petitioner following its purchase in foreclosure (see id.; West 56th & 57th St. Corp. v Pearl, 242 AD2d 508 [1997]). Petitioner demonstrated that it had served a notice voiding the lease (see Matter of Fresh Meadows Jewish Ctr. [Gordon], 75 AD2d 814, 815 [1980]).

RPAPL 713 (5) allows for a special proceeding to be maintained after service of a 10-day notice to quit where "the property has been sold in foreclosure and either the deed delivered pursuant to such sale, or a copy of such deed, certified as provided in the civil practice law and rules, has been exhibited to" the respondent. Since, here, the lease was voided, not terminated, no landlord-tenant relationship ever existed between the parties. Thus, a proceeding pursuant to RPAPL 713 (5), not a holdover proceeding (RPAPL 711 [1]), was the appropriate proceeding for petitioner, a purchaser in foreclosure, to commence against occupant. As petitioner demonstrated that it had voided the lease; that it had exhibited the referee's deed to occupant's principal; that it had served a 10-day notice to quit; and that occupant had remained in possession of the subject property after the expiration of the 10-day period, petitioner is entitled to a final judgment of possession.

Accordingly, the final judgment is reversed and the matter is remitted to the Civil Court for the entry of a final judgment awarding possession to petitioner."

Friday, December 9, 2016

WHAT KIND OF COUNTERCLAIMS CAN A TENANT ASSERT IN A HOLDOVER PROCEEDING



537 Greenwich LLC v Chista, Inc., 19 Misc 3d 1133(A) (2008 - Civil Court Of The City Of New York, New York County):

”CPLR § 407 authorizes a court at any time to sever a counterclaim in a special or summary proceeding to continue as a plenary action. Where a tenant's counterclaim in a holdover proceeding is not inextricably intertwined with the landlord's main claim for possession, it should be severed from the summary proceeding as it may inordinately delay the summary nature of the special proceeding. Sutton Fifty-Six Co. v Fridecky, 93 AD2d 720 (1st Dept 1983). "Where the counterclaim has nothing whatsoever to do with the issue of whether the landlord is entitled to possession of his property, the counterclaim ought not be considered. Under such circumstances, the court should sever the counterclaim from the proceeding. Summary proceedings are special proceedings and under CPLR 407, the court may at any time order a severance." 3 Rasch, New York Landlord and Tenant §43:43 (4th ed. 1992)....In this case, this Court exercises its discretion to sever respondent's ....Counterclaims as they are not inextricably intertwined with petitioner's main claim for possession and would inordinately delay this summary proceeding.”