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Franklin Avenue - to take legal action or not? — Brooklynian

Franklin Avenue - to take legal action or not?

MrBisco
MrBisco
edited February 2015 in Crown Heights/Prospect Lefferts Gardens
Hi all,

My family lives in an apartment on Franklin Avenue. Several issues have recently come to our attention, and we sought the advice of a lawyer. I'd like to ask for some feedback before moving forward.

1. The building was built before 1929 and was zoned for 4 apartments total (in a 4-story building, one apartment per floor). There is no certificate of occupancy.
2. In 2011, the landlord split the first floor into two separate apartments with two separate tenants. The LL never applied for a certificate of occupancy. The lawyer said that, without a certificate of occupancy for the building, no one in the building is responsible to pay rent until a certificate is acquired.
3. There are also people living in a (potentially illegal) basement apartment, bringing total number of separate units to 6, which would make the building rent stabilized. While we are paying an above-$2500 rent right now, stabilization would still apply to all apartments regardless of lease amounts. Not clear on the hows or whys in that one, but he was very clear and explicit that was the case.

Now, there is potential long-term gain for us in several ways. First, we theoretically might not be paying rent for months as the certificate gets sorted out. Second, we might end up with permanent rent stabilization, which would secure our ability to afford living here long term without fear of getting priced out. Third, our rent might be significantly lowered depending on DHCR calculates what our rent should be.

All that said, it also feels a bit too good to be true, that I'm missing something obvious. Above and beyond the risk of throwing a grenade into an already tenuous tenant-landlord relationship, what am I missing? What haven't we thought of?

Happy to provide any details that I feel I'm able to. Thank you!

Comments

  • crownheightster
    crownheightster
    I think you might risk the building being condemned (w/o certificate of occupancy), everyone being evicted, and the landlord selling out to a developer. 
  • whynot_31
    whynot_31
    edited February 2015
    Crownheightster has a good point.

    #2 makes sense to me, because not having a C of O would make the space legally not habitable. When an apartment becomes legally inhabitable, the lease usually becomes void.

    #3 interests me. I have not heard of a building of less than 6 units becoming subject to Rent Stabilization just because some units were subdivided (or illegally created in the basement), and the total number of units is now 6 or more.

    Did the landlord accept some kind of tax credits or financing in the the past that obligated them to abide by rent stabilization rules? That would make more sense to me.

    My feedback:
    A. I assume the lawyer you spoke with is going to represent you on a contingency basis, meaning that you owe the attorney nothing if you lose. If not, you may want to shop around for a lawyer who will agree to such terms.

    B. Speak with a different attorney about #3.

    c. Be aware of the tenant blacklist. Even if you win in court, you will likely end up on this list, which will cause future landlords to avoid renting to you.

    http://www.npr.org/2014/12/14/367833532/tenant-blacklist-can-haunt-new-york-renters-for-years
  • eastbloc
    eastbloc
    Old buildings have a grandfathered C of O.  My 1910 townhouse does not have one.

    Justifiable reasons to not pay rent to your landlord typically require you to put the rent in a separate account due once the conditions are remediated.  It is not meant to incentivize you to any financial gain as a result of withholding rent.

    Talk to another lawyer.
  • Dawndew
    Dawndew
    edited February 2015
    It is common for very old building to not have C of O if no changes were made. But he has made changes that will have to be removed and fined. You won't get stabilization out of this situation. If you don't pay rent you can be evicted. does not sound like he is doing anything against you. He Is in violation with hpd
  • ehgee
    ehgee
    There does appear to be some mechanism by which some long-term townhouse tenants can be under rent stabilization, though I don't know what it is. Perhaps there is just case law that, if everyone thought they were covered by rent stabilization for long enough, they are?

    But, yes, tread with caution— there is perhaps some possibility that you might end up with a rent-stabilized lease, but your landlord would very likely hate you, and would probably at best provide grudging repairs and maintenance in a delayed fashion. And the blacklist is a risk.

    If you want a rent-stabilized apartment, I would personally start looking for one that everyone agrees is under stabilization, probably a little further out. Somewhere along Nostrand might be a good spot to look, while still having easy train access to Franklin and Manhattan. Likewise, there are a lot of rent-stabilized buildings  around the Church Ave station, and the B/Q is a very quick ride to Manhattan.

    Often such apartments seem like they're just in the windows of local real estate agents, as opposed to getting put out on Craigslist since they're very easy to rent out.
  • eastbloc
    eastbloc
    Good luck getting a rent-stabilized apartment if you end up on the tenant blacklist because your landlord sued you.

    There are better ways to make money, believe me.
  • crownheightster
    crownheightster
    Or try the brooklyn Jewish hospital complex. Friends just signed a rent-stabilized lease there.

    I'd definitely recommend that you talk to a few different lawyers, and maybe even the team from UHAB. Just because there may be case law that establishes the possibility of converting townhouse apartments into stabilized apartment does not mean that the case law is any good circa 2015. This kind of case would move through housibg court into NY's Second Department Court of Appeals, and it will be costly to litigate and any litigation would last for years. Unless some nonprofit group is going to pick up your case and try to make it into an impact litigation kind of case, this will likely cost you a hundred thousand dollars (conservatively) to litigate this through the NY State Supreme Court and to the federal circuit court of appeals.

    And with NY fairly conservative bench, I would place all my eggs in d basket that you will get a good judge.

    I think your idea is very risky (for your family and all the other tenants in the building). I'd put my energy into finding another apartment.
  • whynot_31
    whynot_31
    edited February 2015
    If you find an apartment that you like that is rent stabilized, I would consider offering a "gratuity" (to the landlord, departing tenant, broker or agent) to ensure that you are chosen for the apartment.

    While prohibited by law, these gratuities are very common, and you may not get the apartment without said payment.

    Be careful, don't pay such a fee and STILL not get the apartment. Scams are common, because people are desperate, and the victims have little legal recourse.

    Many people decide that such "fees that don't come with a receipt" are a small price to pay for a lease is in compliance with the law, and an apartment that is in good shape.
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