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PURSUANT TO THE LOFT LAW AND THE REAL PROPERTY LAW, THE LANDLORD WAS ENTITLED TO TERMINATE THE TENANCY AND REGAIN POSSESSION OF THE LOFT IN A HOLDOVER PROCEEDING (CT APP). ​

The Court of Appeals, in a full-fledged opinion by Judge Garcia, over an extensive two-judge dissent, reversing the Appellate Division, determined the the Loft Law did not prohibit the landlord, Aurora, from terminating the tenancy and regaining possession of the loft by a holdover proceeding. The opinion and the dissenting opinion are comprehensive and cannot be fairly summarized here:

Aurora Associates LLC, the owner of Loft 3B at 78 Reade Street in Manhattan, commenced this holdover proceeding to recover possession and terminate the tenancy of the current occupant. Summary judgment was granted to the tenant on the ground that Aurora could not terminate his tenancy because the loft unit was subject to rent stabilization. We must decide whether a loft unit located in an interim multiple dwelling covered by the provisions of the Loft Law but exempt from the rent regulation provisions of that statute by operation of a sale of the prior tenant’s rights and improvements is otherwise subject to rent stabilization. We hold that it is not … . * * *

As the Housing Court Judge explained, “[T]he core of the parties’ dispute is the rent regulatory status of the subject premises” because “[I]f the subject premises is unregulated, termination of a tenancy pursuant to Real Property Law … 232-a is a remedy available to Petitioner,” and “[i]f the subject premises is rent-stabilized, RPL … 232-a is not a remedy available to Petitioner.” * * *

Here, the prior owner purchased rights and improvements in a particular unit in this Loft Law-eligible building, removing that unit from the Loft Law’s rent regulation provisions, entitling Aurora to charge a market rent and, pursuant to Real Property Law … 232-a, to regain possession of the apartment by means of a holdover proceeding. Matter of Aurora Assoc. LLC v Locatelli, 2022 NY Slip Op 00958, CtApp 2-15-22

 

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