Georgia Properties, Inc. v. Santos, 732 N.E.2d 120 (2000)
A landlord cannot circumvent rent stabilization laws by requiring a tenant to falsely represent that an apartment will not be their primary residence as a condition of the lease.
Summary
In this rent overcharge action, the tenant, Santos, sought to recover rents paid exceeding the prior stabilized rate, along with statutory damages. The landlord, Georgia Properties, Inc., argued that summary judgment was wrongly awarded to the tenant because they were denied discovery regarding the tenant’s primary residence status, especially given a lease clause stating the apartment wouldn’t be her primary residence. The court held that the landlord violated Rent Stabilization Code provisions by requiring the tenant to make such a representation as a condition of renting, and that the tenant provided sufficient evidence that it was their primary residence. Thus, the landlord could not overcome the tenant’s legal position.
Facts
Santos, the tenant, entered into a lease with Georgia Properties, Inc., the landlord. The lease contained a rider stating that Santos would not use the apartment as her primary residence. The landlord allegedly presented the lease as a take-it-or-leave-it offer. Santos later brought an action claiming rent overcharges, asserting the apartment was her primary residence all along and that the landlord had illegally circumvented rent stabilization laws.
Procedural History
The trial court granted summary judgment to the tenant, finding the landlord had violated rent stabilization laws. The Appellate Division affirmed. The landlord appealed to the New York Court of Appeals as of right, based on a two-Justice dissent from the Appellate Division’s nonfinal order.
Issue(s)
Whether a landlord can require a tenant to represent that an apartment will not be used as the tenant’s primary residence as a condition of renting the apartment, in order to circumvent rent stabilization laws.
Holding
No, because Rent Stabilization Code § 2525.3(b) prohibits an owner from requiring a prospective tenant to represent that the housing accommodation shall not be used as the prospective tenant’s primary residence, and Rent Stabilization Code § 2520.13 voids any agreement by the tenant to waive the benefit of any provision of the Rent Stabilization Law.
Court’s Reasoning
The Court of Appeals held that the landlord’s actions violated the Rent Stabilization Code. The court emphasized that Rent Stabilization Code § 2525.3(b) prohibits landlords from requiring tenants to represent that an apartment will not be their primary residence as a condition of renting. Furthermore, Rent Stabilization Code § 2520.13 voids any agreement by the tenant to waive the benefit of any provision of the Rent Stabilization Law. The court stated that “[a]n agreement by the tenant to waive the benefit of any provision of the [Rent Stabilization Law] or this Code is void.”
The court reasoned that deregulation of apartments should occur through official means, not through private agreements that are expressly forbidden. The court found the tenant’s evidence, including correspondence from the landlord, a driver’s license, voter registration, tax returns, utility bills, and school enrollment contracts, sufficiently proved that the apartment was her primary residence. This negated the necessity for further discovery. The court concluded that the landlord could not present anything to overcome the tenant’s legal position, rendering summary judgment appropriate. The court noted that the tenant’s affidavit stated she had resided in New York City prior to moving into the apartment and she had consistently resided in this apartment, as her sole residence, since July 1991.