De Facto Rent Stabilization in New York City

De facto rent stabilization is a judicially created doctrine through which buildings that would not otherwise be subject to rent stabilization can become rent regulated. This article discusses the origins of de facto rent stabilization and its use as a defense in summary eviction proceedings in New York City. It also explores issues that repeatedly arise in such cases, as well as best practices for attorneys defending tenants that have a viable de facto defense. This article does not address lofts, which have a unique status in New York City and a separate body of applicable case law that pertains to the creation of residential dwelling units in formerly commercial space.