Landlord-Tenant—Court Dismisses Holdover Proceeding Based on Illegal Business or Trade Being Conducted out of Apartment—Landlord Failed to Demonstrate There Was Ongoing Business of Manufacturing or Selling Drugs at Premises—Failed to Show Tenant’s Knowledge or Acquiescence In Illegal Use of Apartment

A landlord commenced a holdover proceeding, seeking to terminate the tenancy of a tenant “based upon an illegal business or trade being conducted out of her apartment pursuant to RPAPL 711(5), RPL 231(1) and Rent Stabilization Code [RSC] Sections 2524.2(b) and (c) and 2524.3(d).” The landlord alleged that a subtenant, in the vicinity of the apartment, “was in possession of a controlled substance, oxycodone, and sold two of the pills to an undercover detective.” The landlord further alleged that the subtenant and the tenant’s daughter had acted in concert to sell one pill and that another subtenant “possessed and sold marijuana to an undercover officer inside the building.” The foregoing incidents occurred on Oct. 18, 2012. The landlord also alleged that it had received numerous complaints from tenants in the building regarding drug related activities from the apartment.