Tenants Rights Upon Condemnation in New York

A building is condemned when local authorities have decided that it is not fit for human habitation. They may do this because of safety or health code violations. Or a building might be condemned because it suffers structural damage, e.g., a tree falls on the structure and causes significant damage. Lack of sanitation and fire hazards can also lead to condemnation.

People are not permitted to live or work inside a building that has been condemned. However, a condemned building might be occupied again after all of the violations are corrected to the satisfaction of the local government agency that identified violations or other issues that necessitated the condemnation.

However, while violations are being corrected or if the owner is not able to repair the structure, any residents, including a residential tenant, may be required to move out immediately and permanently.

If the property is completely unfit for habitation, a tenant’s lease may even be terminated automatically. If the condemnation impairs the habitability of the property, courts have held that the lease should be terminated. If the condemnation has a significantly deleterious effect on the tenant’s right to a safe and habitable environment, the lease may be voided.

It is important for both landlords and tenants to recognize that different jurisdictions may have different local laws and regulations. Municipalities and counties may have specific laws that address lease termination in the event a residential rental is condemned. Landlords and tenants need to consult local laws in order to determine what they say about their respective rights in the event of a condemnation.

In addition, a lease agreement may contain provisions that address condemnation. A landlord may have included terms that state what may happen in the case of condemnation. Certain lease agreements outline rights and responsibilities of both parties if the property is condemned.

A lease remains valid while condemnation proceedings are in progress. Tenants must continue to perform as required by their lease. This includes paying rent until the property is officially condemned.

Is Rent Paid After the City Housing Authority or the Government Takes Over Returnable to Me?

A legal consultation in New York would help landlords and tenants understand condemnation law and the rights that landlords and tenants have.

A tenant may be entitled to financial relocation assistance in the event of a condemnation. If the conditions in the property are so bad that it poses a risk to the health or safety of the tenants, the city or county in which the property is located may make them leave immediately.

The city or county may then require the landlord to pay the tenant to relocate to a new residence. If a tenant receives a notice from the city or county requiring them to leave their residence, they should ask the code enforcement office about the benefits that may be available to them immediately.

In some cases, a tenant is able to negotiate an agreement with the local government agency about a timeline for the rehabilitation of their property. After the repairs have been made, the tenant may schedule a time for the local inspector from the local housing authority to visit the property and confirm that the code violations have been fixed. The tenant may be able to return to the property.

What Happens if Only Part of the Land, Property, or Building Is Condemned in New York?

Condemnation can also apply to land. Land condemnation is a legal process in which a government agency seizes private land for a public use. This is also known as “eminent domain.”

In order for the condemnation to be constitutional, the government agency must demonstrate that the action serves a public purpose. The government must also pay fair compensation to the owner of the land under eminent domain law.

The agency that has condemned the property would require the tenants occupying any structure on the property to vacate the property by the date specified in a relocation notice that the agency would issue. Generally, residential tenants are entitled to relocation assistance from the agency that condemns the property. The tenant should be able to cover moving costs and the fair market value benefit of the remaining lease term if there is one.

Commercial tenants would be entitled to recover compensation for their moving expenses and relocation costs. They would also be able to recover the value of fixtures they may have installed in the structure. If the commercial tenant is a business that cannot be relocated, they could claim the value of the business.

When a tenant’s property is condemned, they may be able to recover compensation or apply for a refund of rent that has been paid for a period of time when they would not be able to occupy the property. They would file a claim with the agency that has condemned the property. A tenant would probably want the help of a New York landlord-tenant lawyer in claiming their tenants’ rights upon condemnation or in an eminent domain situation.

The lawyer would review the terms of the tenant’s lease as it would be critical to determining the tenant’s right to compensation in a situation involving condemnation or eminent domain. Local and state law would also provide guidance as to a tenant’s rights.

A tenant who wants to claim compensation would do the following:

• Review Lease: The lease agreement may contain specific clauses about the tenant’s rights when there is a condemnation.
• Contact the Government Agency: Once a tenant is notified of the condemnation, they should contact the agency that notified them. They would ask if there is a process for filing a compensation claim.
• Consult a Lawyer: A lawyer can help a tenant review their lease and assess local law regarding their potential compensation claim. They can also guide a tenant through any bureaucratic or legal procedures.

A tenant would also want to do the following if they plan to seek compensation for condemnation:

• Prepare to Prove Damages: In order to support a claim for compensation, a tenant wants to document financial losses they incurred due to the condemnation, such as:
  • Relocation costs
  • Lost business income
  • Loss of a lease term.
• Negotiation and Settlement: In some situations, it may be possible for a tenant to negotiate a settlement with the government agency involved in the condemnation. This would be preferable to going to court.

Issues such as negotiations with government agencies and calculating damages can be complex. A tenant would best approach them with the help of an experienced attorney.

If only part of a parcel of land or a building is condemned, then the tenant might recover for their losses in connection with the partial condemnation.

Can a Tenant Recover for the Remaining Part of the Lease?

As noted above, under certain circumstances, if a condemnation deprives a tenant of the ability to reside in a rental for a period of time when they were entitled to do that under their lease, they should be able to recover for the value of the lost term.

How Often Do Condemnation Clauses Appear in Leases?

There are millions of lease agreements, residential and commercial, in the state of New York. The number that have condemnation clauses would be difficult to estimate. The important issue is whether a tenant facing condemnation of whatever kind has a clause or clauses regarding the respective rights of the tenant and the landlord in their lease agreement. A tenant wants to review their lease and, ideally, have a lawyer review it also.

Do I Need To Contact a Landlord-Tenant Lawyer in New York?

If you are facing a condemnation situation in your residential rental, you need to talk to a New York landlord-tenant lawyer as soon as possible. LegalMatch can quickly connect you to a lawyer. The law regarding condemnation and its effects on the rights of a tenant can quickly become complex, and a tenant is going to get the best possible outcome with the help of an experienced landlord-tenant lawyer.