Woman who didn't pay rent for 9 years wins case

Landlord can't evict her if he hasn't kept the building up to code, New York court rules. The Loft Law allows commercial buildings to be used as residences if they meet safety standards.

By Teresa at MSN Real Estate Jun 12, 2012 10:26AM

Since 2003, artist Margaret Maugenest has refused to pay the rent on her loft in Brooklyn, saying the building is not up to code.

 

Four years after her landlord sued to evict her, the New York State Court of Appeals has agreed. Maugenest can keep the $60,000 in unpaid rent she has faithfully put into escrow since she stopped paying nine years ago.

 

"We just want the owner to do the right thing," said Maugenest, whose rent is less than $600 a month, in The New York Times. You can see photos of her loft here.

 

Post continues below

 

Hands exchanging stack of hundred-dollar bills (© James Lauritz/Getty Images)New York City has some of the strongest tenant-protection laws in the nation. Maugenest's building, an abandoned shoe factory turned into lofts in 1979, is subject to the 1982 Loft Law. That law requires landlords to bring former commercial buildings up to fire and safety standards in order to use them as residential rental buildings.

According to Maugenest and her neighbors, her landlord has not done that.

The building owner's law, David Berger, argued that the law itself has made it impossible for the owner to make the necessary upgrades, since it requires tenants to approve all improvements. "If it wasn’t safe, they wouldn’t be living there," he said in The Times.

Artists began moving into the building in 1979 and have made improvements themselves, including replacing all the windows in the 1990s. Maugenest, who arrived in 1984, paid for all the plumbing and electrical work in her loft.

 

"The residents have done a lot to keep the building from crumbling," textile artist Janice Everett said in The Times.

An unknown number of other buildings in New York could be in the same situation. About 300 have not yet met the requirements of the 30-year-old Loft Law, but it's not known how many have received extensions, The Times reported.

Tags: rentals
110Comments
Feb 27, 2013 1:23PM
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It says many of the tenants spent their own money to upgrade wiring and improvements the landlord should have been improving but 600.00 a month in NY is awfully low.
Rent control is one thing but it should at least take cost of living into consideration.
It IS a catch 22, how can you afford improvements when the rent barely covers the taxes.
Aug 27, 2012 8:59AM
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This is simply a tenent working the system. Scum bag tenents far out number scum bag landlords.

 

Aug 4, 2012 5:46AM
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So the judge should have ordered if he made the improvements, he gets the $60,000 in the escrow account, not to let her keep it. Rich judges that never have to worry about rental income to pay the bills on property that someone else is living in
Aug 4, 2012 5:26AM
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So if the building is so bad, then if I was the Landlord, I would have it condemned and then she would have to move so they could tear it down.
Aug 4, 2012 5:20AM
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So the landlord should make improvements to the building when he is not getting any money from rent to do the improvements. only $600 dollars a month in Brooklyn. and the landlord can't evict her? She will live there forever rent free, because if he does put money into it, she will never pay rent, using some excuse not to. I would not live in New York, and definitely would not be a Landlord, they have no rights and they will always get screwed
Jul 28, 2012 5:11PM
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It sounds like a catch 22.  You can`t make repairs if no one pays rent.  He shouldn`t have rented untill each unit was at,

code., one at a time.   Why did the city let him rent the units without having them inspected or setting up a time frame for

the repairs?  sounds like he was short on cash from the start. need more info.

Jun 12, 2012 7:28PM
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I agree with the court on this one. And it says she's put the rent into an escrow account so its not like she's just trying to get out of paying rent.
Jun 12, 2012 1:48PM
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People this was not a negotiation process. It was a court applying the law as written by the lawmakers.

 

 That law says landlords must meet certain requirements of habitability to collect rent for that space. If you rent the space and it does not meet those requirements or a any time falls below  the minimum requirements the tenant may withhold rent payment until said repairs are made .

 

 Instead of repairing the unit or units he elected to evict this woman. The article doesn't say why, but it was a stupid move one I'm sure he is now regretting.

Jun 12, 2012 1:43PM
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Mayors, take note: this kind of law is what it takes to make a city where folks don't keep moving farther and farther away from the core.
Jun 12, 2012 1:22PM
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This is a mighty blow against slumlords who want to skim profits off buildings they rent predominantly to the poor and disenfranchised who don't know how to combat these sleazebags. This guy has skirted established law, for 30 years, yet expects to be able to profit from his own flagrant disregard. I'm glad to see the stake put through the heart by people who do know their rights, use the law the right way (good idea: escrow account, showing intent to pay upon performance), and benefit the interests of many others who don't know how to use the legal system.

For those of you defending the landlord's position, note that the building wasn't in compliance with code for residential use 30 years ago -- ipso facto, he had no right to allow people to move in, let alone collect rent. "To live outside the law, you must be honest." -- Bob Dylan

Jun 12, 2012 1:16PM
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Yeah, " move out " how bout you "just stop renting" people who rent usually have lower incomes and can't afford to "just move out". If we didnt have laws like this the "haves" would mistreat and take advantage of the " have not's" plain and simple just like almost every other industry. we have laws for a reason. I'm all for paying your bills and taking care of business but these slumlords dont fix $hit until you start messing with their money point blank.  People are not denying life saving repairs to save money these a$$holes are not even TRYING to fix it.
Jun 12, 2012 1:12PM
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It appears to be catch 22. If they want it brought up to code, then he has to raise the rent to cover the cost of repairs and upgrades. Because they are required to approve all upgrades, they have been voting it down to keep the rent cost down. Frankly, they did it to themselves and they should be evicted and the lady should pay what she owes. It is people like her that make it impossible to get things done because they tie up the system.
Jun 12, 2012 1:12PM
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SoxFan (REdsox I hope) I can only agree. This woman did not want to move because, if I'm not wrong, she is in a rent controlled neighborhood. If New York law supports her the law needs changing. I am all for tenant protection because no, not all landlords are on the up and up. Here in Georgia the law is clear and concise, and every month when we have to go to court to get these dead beats out the judge gives the same exact speech. It begins like this...
   "If you are here to claim you've not paid your rent due to maintenance issues YOU WILL LOSE YOUR CASE. If you are still living at the address you apparently feel it is habitable, and thus you are required to pay rent. Georgia law is very clear. IF YOU LIVE THERE, YOU PAY YOUR RENT."
   He goes on for ten minutes. We own better than 300 apartments, and after many years people still manage to surprise me. Most of the time, though, it's the same games. A resident owing us rent will vanish in the night leaving piles of trash only to show up a month later claiming they'd not left and that we stole their laptop (funny as most of them can't SPELL lap top let alone use one). The ever popular, "I didn't pay my rent 'cuz I have MOLD!", one woman even going so far as to spray paint her bathroom ceiling green and trying to introduce her "fotagrafic evidens" as she spelled it in the writ answer. One growing in popularity is BEDBUGS. Yes, they often DO have them (making it HELL to turn over the unit), but we've always been able to prove it was because they'd fished every piece of furniture they had out of OUR DUMPSTER (PEOPLE! IT WAS THERE FOR A REASON!). The popular, "They're gonna keep my deposit!"...an irony considering we've not charged a deposit in the 54 years since our family built the place. A good one..."I'm not paying because my electric bill is too high!"...of course that has nothing to do with them keeping the A/C on 55 and the heat on 90.
   The old saying is, "I see so much I could write a book!". I actually am. If you have any good stories to contribute contact me with a message on Facebook under Michael R. Chase (email nfd35@hotmail.com)!

Jun 12, 2012 1:06PM
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No one said anything about her or other tenants not giving approval for improvements only no improvements were attempted. How can you guys bag on the chick, the only thing these slumlords care about is money so if you ever want to get your voice heard you have to speak in a language they can understand $$$. Its not like she was trying to scam or keep the money, she put it in ESCROW. No one is saying $hit about the a$$hole landlord that wont fix $hit
Jun 12, 2012 12:55PM
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If the building was unsafe, the tenants would have to probably be evicted so that the building could be made structerly sound.    As in most cases the tenants or the owners both have to take responsibility for their actions.  The Tenants should not have to pay for fixing the place, (unless there was some financial bargin (cut in lease rate).   Also the Tenants didn't have to say, but did because it was financally in their intreast to say, because of the cheap rent.  I think the judge shouldn't have given them free rent for the time but reduced the amount of money the tenants got to keep, and also account for the money they put into the place.  The crazyest part is it took 4 years for the court case to decide.  I would not want to own any rental property in NY.  In most cases that decesion would have been handed out in less then 3-6 months. 
Jun 12, 2012 12:52PM
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The fact that Ms. Maugenest placed the money in escrow shows that she wasn't trying to "get over" on her landlord. I'm certain that she would have gladly paid her back rent had the upgrades been done to bring the lofts up to code. Now, had she not had ANY money or ANY means of making money ie; a job---then heck yeah! By all means kick her out on her ear! But she was not certain which way the courts would rule...even after all these years...and even with tenant protection statues in place...and even with the "Loft Law" existing.
Jun 12, 2012 12:46PM
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 Loft Law... It is the law.. Do not like it; VOTE...
Jun 12, 2012 12:41PM
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And this is what we call the "Justice System!?" Seriously, move the hell out. Why live in a place you deem unsatisfactory for that long for free! Your mooching and the system allows you to do it!? Shame on you. Pay your rent or move out. I would have evicted you after the first month so I supposed its a little bit of the landlords fault for allowing you to stay that long. 
Jun 12, 2012 12:32PM
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If it was so bad why did you not leave.   That is the free market.  
But if she improved the building on her own dime,  then it makes scene that she has a stake in the building.   Free market would be him reimbursing her for the improvements.  
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About Teresa Mears

Teresa Mears

Teresa Mears is a veteran journalist who has been interested in houses since her father took her to tax auctions to carry the cash at age 10. A former editor of The Miami Herald's Home & Design section, she lives in South Florida where, in addition to writing about real estate, she publishes Miami on the Cheap to help her neighbors adjust to the loss of 60% of their property value.

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