In the Matter of Notre Dame
Leasing, LLC,
Respondent,
v.
Alexandra Rosario, et al.,
Appellants.
2004 NY Int. 65
On this appeal, we must determine the circumstances under which Social Services Law § 143-b (5) (a) (the "Spiegel Law") allows a social services tenant to withhold rent based on dangerous violations in the building.
Alexandra Rosaio ("tenant") resides with her husband
On January 4, 2000, the landlord commenced a summary proceeding against the tenant in Civil Court to recover $1,454.43 in unpaid rent for October 1999 through January 2000. Relying on Social Services Law § 143-b (5), the tenant moved for summary judgment dismissing the proceeding. She asserted that because conditions in her building were "dangerous, hazardous or detrimental to life or health," the law excused her from paying rent. In support, she submitted records from the New York City Department of Housing Preservation and Development ("HPD") indicating that there were 33 Class "B" and "C" violations in the building.[1]
Notwithstanding these violations, the HRA did not
withhold rent from the landlord, although it could have, pursuant
to its powers under § 143-b (2). The tenant contended, however,
that under § 143-b (5) of the "Spiegel Law" the mere presence of
such violations justified her nonpayment of rent, even without
previous withholding by the HRA. In response, the landlord
introduced proof that HPD had re-inspected the building,
dismissed 13 of the violations and marked 19 other violations
Civil Court found that the tenant had made a prima facie showing that § 143-b (5) authorized her to withhold rent, but stayed the matter until the landlord submitted proof that it had remedied the violations. The landlord appealed to the Appellate Term, which reversed Civil Court and denied the tenant's motion for summary judgment. The Appellate Term concluded that a tenant could not invoke the § 143-b (5) defense because the "public welfare department" -- here, the HRA -- had not also withheld its share of rent payments to the landlord, pursuant to its authority under Social Services Law § 143-b 2). The Appellate Term later granted the tenant's motion for reargument and, following reargument, reaffirmed its earlier decision and granted the tenant leave to appeal to the Appellate Division.
By a divided court, the Appellate Division affirmed the Appellate Term's reading of § 143-b (5). Two Justices, however, concluded that the language of § 143-b (5) supported the tenant's claim. The Appellate Division granted the tenant permission to appeal to this Court. We now affirm.
Social Services Law § 143-b (5) (a) provides that it
As we stated in People v Mobil Oil Corp. (48 2 192, 199 [1979]), "[i]t is a well-settled principle of statutory construction that a statute or ordinance must be construed as a whole and that its various sections must be considered together and with reference to each other" ( see also McKinney's Cons Laws of NY, Book 1, Statutes, § 97). Although § 143-b (5) might be read to allow a defense untethered to the actions of the public welfare department, such an interpretation undermines the statutory scheme. Section 143-b (5) is a constituent provision of a statute that primarily addresses the rights and responsibilities of the "public welfare department" and "public welfare official[s]," and is best read that way.
Thus, § 143-b (1) authorizes the public welfare
The statute further obligates the "department or agency having jurisdiction over violations" to report them to the "appropriate public welfare department." Subsection three empowers public welfare officials to initiate rent reduction proceedings "whenever such official has knowledge that essential services * * * are not being maintained by the landlord or have been substantially reduced by the landlord." Subsection four, in turn, permits the public welfare department to "obtain and maintain current records of violations in the buildings where welfare recipients reside." Finally, subsection six allows the public welfare department to pay withheld rent "upon satisfactory proof * * * that the condition constituting a violation was actually corrected.""withhold the payment of any such rent in any case where he has knowledge that there exists or there is outstanding any violation of law in respect to the building containing the housing accommodations occupied by the person entitled to such assistance which is dangerous, hazardous or detrimental to life or health."
The dissent argues that the public welfare departments are apparently not using their powers under the Spiegel Law to withhold rent when violations are present. But it is for those agencies, not for us, to decide when their powers should be used. And if, indeed, the agencies are not doing enough, the proper remedy is for them to do more, not for us to rewrite the statute.
The dissent's reading of § 143-b (5) is simply incompatible with the Spiegel Law's framework. Section 143-b designates the public welfare department and its officials as the principal enforcement actors under the statute. Given this context, it would be anomalous for the Legislature to fashion subsection five as a private defense that could be invoked by tenants independent of any agency action. Rather, § 143-b (5) is best understood as a means of shielding tenants from eviction when the public welfare department chooses to withhold rent, pursuant to its discretion under § 143-b (2). Indeed, the language of subsection five itself suggests that agency action under § 143-b (2) is a condition precedent to a tenant's invoking the § 143-b (5) defense. The Spiegel Law defense applies only when a building violation relating to "conditions which are dangerous, hazardous or detrimental to life or health" is the "basis for nonpayment." For the purposes of the Spiegel Law, however, agency action is required to determine the existence of a violation. Section 143-b (5) (c) provides that the "defenses provided herein * * * shall apply only with respect to violations reported to the appropriate public welfare department by the appropriate department or agency having jurisdiction over violations."
The tenant's proposed interpretation of § 143-b (5)
not only conflicts with the complex statutory scheme but also
ignores the Spiegel Law's history and purpose. According to
In enacting § 143-b, the Legislature wanted to end
government subsidies to landlords who failed to provide safe and
Although the tenant's interpretation of § 143-b would, in certain instances, promote the Legislature's objective of encouraging landlords to curb substandard conditions, it would also permit tenants to avoid paying rent for violations having no effect on them. As amended in 1997, RPAPL 745 (2) requires tenants seeking to adjourn an eviction proceeding to "deposit with the court within five days sums of rent or use and occupancy accrued from the date the petition and notice of petition are served upon the respondent, and all sums as they become due for rent and use and occupancy." Section 745 (2) exempts from this undertaking provision tenants who claim actual eviction, actual partial or constructive eviction, as well as those who interpose a defense pursuant to the Spiegel Law.
Thus, as the tenant would have it, public assistance
tenants subject to eviction proceedings could cite any violation
in their buildings -- even those having no effect whatsoever on
them -- as a basis for interposing a § 143-b (5) defense and
The Legislature designed Social Services Law § 143-b as
Accordingly, the order of the Appellate Division should
be affirmed, with costs, and the certified question answered in
the affirmative.
Because a plain reading of Social Services Law § 143-b
(5) -- the "Spiegel law" -- allows a recipient of public
assistance, under certain circumstances, to interpose a defense
to an action or summary proceeding for the nonpayment of rent,
where a "public welfare" agency has not previously withheld its
share of the rent, I respectfully dissent.
The statute provides that "[i]t shall be a valid
defense in any action or summary proceeding against a welfare
recipient for non-payment of rent to show existing violations in
the building wherein such welfare recipient resides which relate
to conditions which are dangerous, hazardous or detrimental to
life or health as the basis for non-payment" (Social Services Law
§ 143-b [5] [a]). It also provides that a landlord will not be
entitled to a monetary award against the tenant or to possession
of the premises where these types of hazardous violations are
present ( see Social Services Law § 143-b [5] [b]).
It is well-established that statutory interpretation
begins with the plain language of the statute ( see Leader v
Maroney, Ponzini & Spencer, , 97 NY2d 95, 104 [2001]; Majewski v
Broadalbin-Perth Central School District, , 91 NY2d 577, 583
"[t]he legislature hereby finds and declares that certain evils and abuses exist which have caused many tenants, who are welfare recipients, to suffer untold hardships, deprivation of services and deterioration of housing facilities because certain landlords have been exploiting such tenants by failing to make necessary repairs and by neglecting to afford necessary services in violation of the laws of the state"
(1962 McKinneys Session Laws of NY, at 3207; see also Farrell, 19
NY2d at 490 [indicating that the legislation was intended to
combat "slum housing"]). The provision was clearly enacted
because existing remedies were insufficient to combat the
problems faced by tenants receiving public assistance. Allowing
tenants to withhold rent themselves continues to further the
purpose of the statute, especially in light of the present
situation where public welfare officials apparently are not using
their statutory power to withhold rent when violations are
present. Welfare officials typically do not withhold payments
before an action or a special proceeding is commenced ( see
Lebovits, Landlord-Tenant Practice Reporter, The So-Called
Spiegel Defense, at 5 [May 2001]). In light of this inaction,
the majority's interpretation of the statute essentially thwarts
its purpose -- taking away the threat of nonpayment of rent to
offending landlords and the incentive to make repairs. A plain
reading of the statute is neither an attempt to undermine the
statutory scheme nor to rewrite it, ( see majority opn at 5, 6 &
10) but preserves for all recipients of public assistance a
defense conferred by the Legislature.
1 A Class "B" violation is "hazardous," whereas a Class "C" violation is "immediately hazardous" (22 NYCRR § 27-2115[c][2]- [3]).
2 See also Attorney General's Memorandum to the Governor, dated April 21, 1962, Bill Jacket, L 1962, ch 997, which states, "[t]his bill seeks to correct the anomalous condition wherein one municipal department seeks to prevent slum and dangerous conditions from being maintained at the same time that another governmental unit is financially rewarding such maintenance."
3 We note, however, that § 143-b (2) does give the public welfare department discretion to withhold rent for any apartment in a building with a qualifying violation, regardless of the given apartment's nexus with the violation.
4 In pertinent part, RPL § 235-b provides that a "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." We note that the tenant has raised breach of warranty of habitability as an affirmative defense in this case.
5 Multiple Dwelling Law § 302-a (1) defined a "rent
impairing" violation as "a condition in a multiple dwelling which
* * * constitutes, or if not promptly corrected, will constitute,
a fire hazard or a serious threat to the life, health or safety
of occupants thereof."