Question: I represent a client that purchased a block of unsold units in a condominium conversion from 2015 under a noneviction plan. Some of the units are occupied with nonpurchasing tenants, who I am told must continue to be offered renewal leases free of unconscionable rent increases. Is this correct?

Answer: Yes. While talk of good cause eviction protections overtook the New York state legislative session last week, few people talk about the fact that nonpurchasing tenants in buildings that convert to cooperative or condominium under a noneviction plan have historically received tenant protections that are tantamount to good cause eviction rights. The Martin Act provides certain tenants a right to renewal leases free of unconscionable rent increases, which over the years, has rarely been challenged. To better acquaint the reader, I will provide an overview of such nonpurchasing tenant protections applicable in New York City noneviction plans since 1982, as well as changes made by the Housing Stability and Tenant Protection Act of 2019 (the HSTPA). See 2019 N.Y. Laws, Ch. 36. I will also make some commonsense suggestions that the New York State Legislature could take into consideration next session, should they wish to allow for more conversions in the future.

Nonpurchasing Tenant—Who Qualifies and When?