This is a preview of the full Spring 2025 Quarterly Newsletter. For in-depth analysis and further insights into these topics, Click Here to read the full newsletter.
When One Door Closes, Another Opens
By Martin Meltzer and Andrew T Stafuti
Martin Meltzer and Andrew Stafutti highlight the delays in Housing Court proceedings caused by the Housing Stability and Tenant Protection Act of 2019 (HSTPA) and post-Covid challenges. These delays often lead to significant rent arrears, but property owners still have options to recover unpaid rent. Legal measures include seeking judgments in Housing Court cases or pursuing separate lawsuits (plenary actions) to collect rent balances through asset seizures or wage garnishments. The authors emphasize that owners should explore enforcement options before writing off debts.
The 5001(a) Hammer! or: How I Learned to Stop Worrying and Avoid the Statutory Interest Penalty
Mark Antar’s article focuses on how parties involved in real estate contracts in New York can avoid statutory interest penalties on escrow deposits when transactions fail to close. It explains that statutory interest, set at 9%, compensates the aggrieved party for the delayed use of funds but can be avoided by “contracting around” CPLR § 5001(a). This involves making deposit recovery the sole remedy and placing the deposit in an interest-bearing account, ensuring the nonbreaching party is compensated without triggering statutory interest. Such measures are particularly crucial in prolonged disputes or when the contract ends without a breach.
What You Should Know About Construction Contract Indemnity Provisions
Joseph Verga delves into the importance of indemnity provisions in construction contracts, which transfer risk from one party to another. It highlights key elements, such as enforceable savings provisions, duty-to-defend clauses, and specifying covered claims to ensure robust protection. Indemnitees are advised to carefully negotiate these clauses to avoid liability for the indemnitee’s own negligence and to secure compensation for legal fees and damages. The piece emphasizes the need for precise drafting to mitigate risks and allocate responsibilities effectively.
Charging Tenants for Water Usage – What is Permissible in New York
Diana Strasburg discusses recent rulings by DHCR, stating that New York City building owners cannot charge rent-regulated tenants for hot and cold water usage, as these are required services under the Rent Stabilization Code § 2520.6(r). Even if tenants sign lease riders agreeing to pay for water, DHCR determined such charges lead to rent overcharges, aligning with prior rulings. While submetering is allowed for electricity and other utilities, water costs cannot legally be passed on to tenants. The decision in Matter of Sydney Leasing, LP is currently under appeal in the Supreme Court, Queens County.
Condominium Not Required to Allow Electric Vehicle Charging at Common Element Electric Outlets
Lloyd Reisman’s article discusses a legal case where a condominium’s rule prohibiting the use of common-area electric outlets for charging personal vehicles was challenged under Section 339-ll of the Condominium Act. The court upheld the rule, stating it did not violate Section 339-ll because the outlets were located in common elements, not within a unit or designated parking space. The ruling clarified the Act’s scope, emphasizing the need for unit owners to seek approval for electric vehicle charging stations and adhere to statutory obligations. Only the claim about the condominium withholding plaintiffs’ wires and cords survived dismissal.
BBG Court Victory
Featuring Martin Meltzer and Leslie Mendoza
In a Housing Court case, BBG lawyers Martin Meltzer and Leslie Mendoza successfully defended a building owner against harassment claims brought by a tenant. After the tenant tried to end the case following prolonged litigation, the Court awarded over $53,000 in legal fees to the owner, emphasizing the tenant’s delay and conduct during the case. The tenant had alleged harassment and neglect by the owner, but the Court sided with the owner, finding the claims unsubstantiated. This outcome highlights the importance of owners advocating for their rights in tenant disputes, and BBG encourages owners to explore all legal options.
Recent Transactions of Note
View a summary of selected recent transactions involving BBG’s Transactional Department including both leases, buy/sell refinancing transactions, and recent notable matters handled by our Construction team.
BBG In the News
Sherwin Belkin was quoted in a January 8 article in City & State New York, discussing the diminishing relevance of the real estate pledge in NYC politics. He also critiqued the “Good Cause Eviction” law in a January 28 article in The New York Times, highlighting its potential impact on property rights.
Aaron Shmulewitz addressed remedies for condominium nonpayment by sponsors in The New York Times Sunday Real Estate section on December 28, later republished in Habitatmag.com on February 10. He also commented on the legal complexities of emotional support parrots in Manhattan co-ops in a February 23 article in The New York Times
Each of these insights reflects the firm’s expertise in navigating intricate real estate and housing law matters.
Co-op/Condo Corner
Aaron Shmulewitz and Lloyd F. Reisman head the Firm’s co-op/condo practice, consisting of more than 300 co-op and condo Boards throughout the City, as well as sponsors of condominium conversions, and numerous purchasers and sellers of co-op and condo apartments, buildings, residences and other properties. Read their summaries of recent decisions in this space.
BBG Continues to Expand and Welcomes New Hires
The Firm has recently added eight attorneys and two members of support staff. Read about our new faces and learn more about our Real Estate Tax Exemptions and Zoning Incentives Department, which we are confident will significantly enhance our Firm’s capabilities and provide even more value to our clients.
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