Judge Stoller’s Landmark Ruling: ERAP Payments Establish Lease Obligations in Rent-Stabilized Units

Our firm is proud to announce a significant legal victory that strengthens landlord rights and clarifies the implications of the Emergency Rental Assistance Program (ERAP). In a pivotal decision, Judge Stoller, the Citywide Administrative Judge of the Housing Court, ruled that a landlord’s acceptance of ERAP payments creates a binding lease obligation, regardless of whether the unit is regulated or unregulated.

Key Takeaways from the Decision:

  • “ERAP Lease” Extends Beyond Unregulated Tenancies: Judge Stoller had previously held that acceptance of ERAP created a one-year lease in unregulated apartments, which allowed owners to bring nonpayment proceedings even without a written lease. Some Housing Court judges held that this ruling only impacted unregulated units, but Judge Stoller’s ruling confirms that ERAP creates obligations across all rental types.
  • Tenant Responsibilities Under ERAP: This decision reinforces that owners may enforce their rights to rent with respect to rent-stabilized tenants benefiting from ERAP funding, even without a signed renewal lease.
  • Clarity for Landlords: With this ruling, landlords now have more substantial legal grounds to enforce rent collection when ERAP funds have been accepted.

Why This Decision Matters

For property owners, this case marks a significant development in the interpretation of ERAP’s legal framework. It ensures that rent-stabilized landlords who accept ERAP payments are not left in legal limbo and that tenants cannot claim indefinite occupancy without payment obligations. The ruling helps level the playing field by reaffirming that ERAP participation comes with enforceable tenant duties.

What’s Next for NYC Landlords?

This decision will likely influence future Housing Court rulings and set a precedent for other cases involving ERAP-funded tenancies. Landlords navigating ERAP-related disputes should stay informed and seek legal guidance on enforcing rental obligations under this clarified legal framework.

If you’re unsure how this decision impacts your properties, our experienced legal team is here to help. Contact Andrew Goodman at [email protected] or 212-869-5030 today for expert advice and dedicated representation to protect your rental rights.

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