Justice Richard Braun
Plaintiff cooperative housing corporation moved for summary judgment against defendant, the former sponsor of the co-op conversion, and holder of unsold shares to five apartments occupied by rent-controlled or rent-stabilized tenants, some of whom are seniors. Defendant collected rent from those tenants and paid maintenance to plaintiff, noting rent increases were restricted by the Senior Citizen Rent Increase Program, where the owner receives tax credits to offset the inability to increase rent on units occupied by seniors. The value of the tax credit received by plaintiff was to be credited to defendants against its maintenance, but plaintiff failed to credit defendant since 1996 and defendant began withholding $2,500 monthly to recoup the credit due. Plaintiff argued the statute of limitations limited defendant’s ability to recover funds alleging it could not withhold the full amount of credits based the six-year limitations period. The court agreed, finding defendant failed to raise an issue of fact as the proprietary lease included a no-setoff provision barring defendant from setting off its maintenance obligations with credits. Defendant was limited to recovery for last six years, not the full amount withheld, entitling plaintiff to $29,188.
