Summary Non-Payment Proceeding Stayed Pending Administrative Agency’s Determination on High-Rent Vacancy Deregulation
Following last week’s post regarding the potential far reaching impact an upcoming Court of Appeals proceeding (the “Altman Case”) could have on high-rent vacancy deregulation, the petitioner-landlord in 170 Irving Ave. LLC v. Attalla, 2018 NYLJ LEXIS 458 (Civ. Ct. K. Co. 2018) (“Attalla”) commenced a summary non-payment proceeding to recover possession of an apartment and outstanding rent on the ground that the respondent-tenant failed to pay rent pursuant to the Lease Agreement. One year prior to the commencement of the non-payment proceeding, the respondent had filed an administrative rent overcharge complaint with the New York State Homes and Community Renewal (“HCR”) seeking a determination challenging the high rent vacancy de-regulation of the apartment and rent overcharge. Upon the parties’ request, the court wrote to HCR and requested that it expedite its determination. The HCR responded and advised the court that the HCR would be unable to issue a determination “since the question of which increases the owner may use to the achieve exemption under high-rent vacancy deregulation is being addressed under pending court proceedings related to [the Altman Case].”
Accordingly, the Attalla respondent filed a motion to stay the non-payment proceeding pending the outcome of the HCR determination asserting that “the decision in Altman could be dispositive in determining whether respondent may avail herself of the protections of the Rent Stabilization Code (RSC).” Concluding that there were overlapping issues and common questions of law and fact with the Altman Case and that the HCR is “an administrative agency which has the necessary expertise to dispose of an issue,” Judge Poley ruled that it was provident for the court stay the non-payment proceeding pending the resolution of the HCR determination. You may wish to consider carefully your next steps if you are involved in a rent regulation matter.
The Law Office of Aaron M. Schlossberg, Esq., P.L.L.C.
(This writing is for general information purposes only, should not be construed as legal advice and does not establish an attorney-client relationship)