Sapp v. Clark Wilson, Inc., 2022 NY Slip Op 04184 (2022)

Citation: Sapp v. Clark Wilson, Inc., 2022 NY Slip Op 04184 (2022)
Parent Document: Sapp v. Clark Wilson, Inc., 2022 NY Slip Op 04184 (2022)
Jurisdiction: New York (state)
Effective Date: 2022-06-29
Original Source: https://www.courtlistener.com/opinion/6620002/sapp-v-clark-wilson-inc/ ↗

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Notably, although my colleagues in the majority have concluded, in effect, that, as a matter of law, no illusory tenancies can exist under the facts of this case because providing housing for homeless persons is a legally cognizable reason, they do so by ignoring the express language of the provisions of the Rent Stabilization Code which does not limit the ways in which an illusory tenancy can be created (see 9 NYCRR 2525.2[a]). The Rent Stabilization Code expressly sets forth that "the legal regulated rents and other requirements 'shall not be evaded, either directly or indirectly, in connection with the renting or leasing or the transfer of a lease for housing accommodations'" (Matter of 333 E. 49th Partnership, LP v New York State Div. of Hous. & Community Renewal, 165 AD3d 93, 101, quoting 9 NYCRR 2525.2[a]). In such an evasion of the Rent Stabilization Code, "the subtenant will be accorded the full protection of the rent stabilization laws" (Matter of Avon Furniture Leasing v Popolizio, 116 AD2d at 284; see e.g. Yellon v Reiner-Kaiser Assoc., 89 AD2d 561, 563). Here, my colleagues in the majority wholly fail to address this other basis alleged by the plaintiffs as to how the illusory tenancy was created here—to wit, where the effect of the subleases, directly or indirectly, was to evade the requirements of the Rent Stabilization Code (see e.g. Matter of Avon Furniture Leasing v Popolizio, 116 AD2d at 284).

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