OPINION OF THE COURT
Order entered November 15, 1984 affirmed, with $10 costs.
In September 1975, respondent Lenoir/Hickory Knitting Mills, Inc., a closely held corporation, entered into a written lease for a rent-stablizied apartment at premises 425 East 58th Street, Manhattan. The lease was executed on behalf of the corporation by respondent William Schey, president of the corporation, and provided in a rider that “the apartment hereby leased is to be occupied by Mr. and Mrs. William Schey and such
It is undisputed that respondents William Schey and Barbara Schey are the sole occupants of the subject apartment and have continuously resided therein since the inception of the tenancy in 1975. Prior to expiration of the last renewal term in December 1981, landlord commenced proceedings before the Conciliation and Appeals Board seeking permission to refuse to renew the lease on the ground of nonprimary residence. In September 1983, the agency dismissed landlord’s application “without prejudice”, declaring that it no longer had jurisdiction in nonprimary residence cases, and directed landlord to promptly initiate court action. In the holdover proceeding which followed, Civil Court granted respondents’ cross motion for summary judgment and dismissed the petition.
We affirm. As correctly noted by Judge Tompkins, the rule of Matter of Sommer v New York City Conciliation & Appeals Bd. (93 AD2d 481, affd 61 NY2d 973) is dispositive in this fact pattern. In Sommer, a nonprimary residence proceeding involving the same landlord, the same building, and the samé lease provision permitting occupancy by a named officer of a corporate tenant, as involved herein, the First Department affirmed a Conciliation and Appeals Board (CAB) determination requiring the landlord to offer the corporate tenant a renewal lease, where it was shown that the corporate official designated in the lease maintained his primary residence at the premises. The court stated (supra, p 485), in language equally applicable here, “[T]he lease expressly provided for occupancy by [the corporate president] and the members of his immediate family only * * * In sum, it was a lease which, for all practical purposes, was entered into between petitioner and [the corporate president] but which was executed by [the corporation] so that it could derive certain tax benefits and so that [the corporate president] could derive certain personal benefits. Neither consideration detracts from the reality that [the corporate president] was the ‘tenant in occupancy’ within the meaning of section 60 of the Rent Stabilization Code”.
Landlord contends that the rule enunciated in Sommer was effectively overruled by Omnibus Housing Act § 55 (L 1983, ch
In our view, the reference in section 55 to “subtenants or occupants” of a tenant has no application to the situation where an apartment lease has been taken in the name of a corporation. Such a lease has been characterized as a fiction because the apartment can only be occupied in the first instance as a private dwelling by the corporate person for whom it was intended; in consequence, it is the primary residence of that person, the actual occupant of the apartment, that controls (Matter of Cale Dev. Co. v Conciliation & Appeals Bd., 94 AD2d 229, 232-233, affd 61 NY2d 976). To adopt the construction urged by landlord would be to authorize the eviction of persons, such as the individual respondents here, who live full time at stabilized premises in compliance with the terms of a corporate lease, a result clearly at odds with the overriding purpose of the primary residency laws, viz., to alleviate the acute shortage of housing in New York City by returning underutilized apartments to the marketplace. Had the Legislature intended to fashion new substantive law regarding stabilized corporate tenants and their right to renewal leases, it would not have done so in the elliptical fashion attributed to it by landlord. Rather, it is more likely that the change in statutory language — i.e., from “tenant in possession” to “the tenant, not including subtenants or occupants” — was intended to accomplish a different and broader goal: to prevent individual tenants, no longer in possession, from trafficking in their apartments on the basis of the “primary residence” qualifications of “subtenants or occupants” domiciled at the premises in the tenants’ absence.
Since it is undisputed that the individual respondents William Schey and Barbara Schey maintain their primary residence at the demised premises, and have done so since 1975,
Dudley, P. J., Hughes and Parness, JJ., concur.
