This is a good question by the OP.. I've been reading on here for a while for a very similar situation. I am in a similar situation with my current LL, but we are living off our 1 month's security with the ok. Believe me, after all the lies we have been told we deserve this much. Not to mention LL flat out told us they don't have our security to return to us.
So, for the OP's situation, how can the LL claim that he is losing money when the apartment is illegal? He isn't supposed to be renting it to begin with. The town ordered them to vacate so obviously there must be issues as to why they won't issue the CO, right?
What if the OP has time left on the lease? For those of you saying that the OP owes May rent, would he be bound to pay the additional months remaining on the lease as well?
I understand what you guys are saying about paying the rent and it being different than security, believe me, I do, however the apartment in the OP's case is illegal and the OP was ordered to vacate by the town. IMO, in that situation the LL should forfeit any claims to any rent he feels he is entitled to. Also, last I knew the security deposit can be used by the landlord as reimbursement for any unpaid rent in lieu of returning it.
If I were the OP I would be filing a countersuit to include all moving expenses, brokers fees etc due to this. I would also be contacting the town for copies of the inspections and violations to bring to court which should document any violations that they found.
Being new to NY from another state I am confuddled by all of these illegal apartments, it wasn't an issue where I was from. I have seen some real winners of apartments, or shall I say, what people try to pass off as an apartment out here. Basements you can barely stand up in, entrances you have to duck to get into....... it's disgusting. I had no idea moving out here what it was like. We were told our apartment was LEGAL as well. Turns out, it isn't which is why we are moving. I have children to think of and their safety and security is number one with me.
In addition,I believe that "warranty of habitability" would apply here Habitability (broken link) don't you think? If the apartment is in fact illegal, and can not be occupied, then that is a violation of the warranty of habitability.
Quote:
Sec. 235-b. Warranty of habitability.
1. In every written or oral lease or rental agreement for
residential premises the landlord or lessor shall be deemed
to covenant and warrant that the premises so leased or
rented and all areas used in connection therewith in common
with other tenants or residents are fit for human habitation
and for the uses reasonably intended by the parties and that
the occupants of such premises shall not be subjected to any
conditions which would be dangerous, hazardous or
detrimental to their life, health or safety. When any such
condition has been caused by the misconduct of the tenant or
lessee or persons under his direction or control, it shall
not constitute a breach of such covenants and warranties.
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Again, town states apartment can not be rented, this makes it uninhabitable, correct?
There normally would be a reason beyond taxes (income and property) why an apartment remains illegal, in most cases probably due to code violations, lack of proper permits for the addition/conversion etc (ie: an illegal basement apartment that can NEVER be legal)
I've always been a renter, even as a child, and never would I have dreamed of using my security deposit as my last months rent, but then again, never have I dealt with the LL's of LI. I've received back every security deposit I've ever given in my 15+ years of renting (including from a complex with NO deductions for damage). But things were on the up and up and I had no fears of actually being able to get my money back like I do now