The September, 2022 newsletter published by the New York Real Estate Law Reporter features as its lead article an article penned by KMWB Senior Litigation Partner Nativ Winiarsky discussing a recent win at the Appellate Division Second Department. The Decision in a case entitled Sapp et al v. Clark Wilson et al, __ AD3d __, 2022 NY Slip Op 04184 (2nd Dept. 2022) was a landmark ruling concerning two hot button issues; namely illusory subtenancies and status of transitional occupants.
This important decision provides that landlords who allow transient occupants into possession in the course of entering into service contracts with the city (i.e. participating in New York City’s Cluster Housing Program) do not get saddled with those tenancies and said occupants do not acquire stabilized rights. The Decision provided much needed clarity as to the status of transitional occupants which has again been recently revitalized by Department for Homeless Services.
Legal Aid has appealed the decision and is presently seeking leave to appeal to the New York State Court of Appeals. Stay tuned for any further updates regarding this matter impacting thousands of units throughout the City. KMWB continues to remain in the forefront on these type of issues impacting New York City landlords writ large.