1 800-518-0890 NONPROFIT LANDLORDS
Tenants who live in buildings owned by nonprofit, educational or
charitable organizations (such as a hospital, university,
religious institution, etc.) have been placed under the
protections of the rent stabilization system. These protections
include limitations on rent increases and requirements for the
delivery of essential services.
An organization may refuse to renew a lease in order to recover
the apartment for non-residential, institution-related purposes,
such as a classroom, conference hall, or laboratory. However, the
organization must obtain the approval of the Buildings Department
for the conversion from residential to non-residential use before
the tenant may be evicted.
In certain instances, the organization may also refuse to renew a
lease to recover an apartment for a residential purpose, but
there are restrictions on an organization's ability to invoke
this provision:
-- A tenant who moved into the building before the organization
owned the building may not be refused a renewal lease.
-- A tenant who moved into a building with a nonprofit owner
whose first lease started before July 1, 1978, and who was
not informed at that time of the organization's right to
recover the apartment, may not be refused a renewal lease.
A tenant who rents an apartment from a nonprofit organization,
and whose occupancy is in conjunction with an affiliation with
that organization (such as a student, employee, etc.) does not
have the automatic right to renew a lease once that affiliation
ends, unless it is with the expressed written consent of the
organization.
A nonprofit organization must give at least four months prior
notice to the tenant when it seeks to recover an apartment for
either a non-residential or residential purpose. Any organization
that fraudulently uses this provision of law to empty an
apartment will be subject to heavy financial penalties, including
an award to the tenant equal to three times the damages sustained
from increased rental payments, moving expenses and attorney
fees.