Late HPD Registration Doesn't Forfeit a Small Landlord's Back-Rent Claim, Kings County Court Holds

Singh & Rani LLP

Our firm recently defeated a summary judgment motion on behalf of a Brooklyn landlord seeking unpaid rent and property damages from former occupants of his two-family home. The Kings County Supreme Court denied the defendants' motion in every respect. The ruling clarifies an issue that comes up often for small property owners: what happens when a building wasn't registered with HPD?

Bikram Singh of Singh & Rani LLP represented the plaintiff-landlord in this case.

The Background

After a Housing Court holdover proceeding, the occupants agreed to vacate the apartment. Our client then sued to recover more than a year of unpaid rent and use and occupancy, along with damages to the apartment.

The defendants moved to dismiss. They argued that because the property wasn't registered with HPD during the nonpayment period, our client had permanently forfeited any right to collect back rent under Multiple Dwelling Law § 325 and Administrative Code § 27-2107(b).

The Court's Ruling

The Court rejected both arguments.

The Multiple Dwelling Law does not apply to a two-family home. A "multiple dwelling" under MDL § 4(7) is a building occupied by three or more families. Our client's property is a two-unit building, so the MDL's registration requirement and its rent-forfeiture provision do not apply (citing Moore v. Bender, 280 AD2d 588 [2d Dept 2001]).

Registration under the Administrative Code is curable. Non-owner-occupied one- and two-family homes do have to register with HPD under Administrative Code § 27-2097(b). But following Appellate Term precedent, the Court held that a failure to register can be cured. Our client had since completed his HPD registration, and the Court took judicial notice of the current registration. That made the defendants' registration argument moot.

The case now proceeds on the merits.

Takeaways for Owners

• Owners of one- and two-family homes they don't live in must still register with HPD every year.
• If you missed registration, fix it now. As this decision shows, a cure can preserve your claim for back rent.
• Registering on time avoids the fight entirely. Failing to register can still block a nonpayment proceeding for possession and can delay rent collection.

Bikram Singh represented the plaintiff-landlord in this matter. If you are a property owner facing a registration defense, or have questions about HPD compliance, contact Singh & Rani LLP at (212) 729-6920.