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petitioner owned this building. Petitioner described the
building as rundown, but occupied by a few persons. When he
bought the building, the previous owner and tenants had been at
loggerheads with regard to services in the building. Water was
leaking from one bedroom to the other, and the floors of the
bathrooms and kitchens were bad. Petitioner claimed he worked on
the property to make it habitable. As indicated below,
petitioner did not rent the apartments. Some of the tenants from
the prior ownership continued to occupy the building but did not
pay rent to petitioner. We conclude that the apartment building
was not habitable, except perhaps for a few squatters.
In 1991, petitioner never collected rent from the squatters
because, he claimed, he would get involved with the "landlord and
tenants court". Petitioner never rented any apartments to any
legitimate tenants in 1991 because, he said, of the same fears.
Petitioner explained these fears as follows: "I would be sued by
the tenants because I couldn't stop the water that was escaping
and going down on the other [apartments]". When neighbors
inquired as prospective tenants about an apartment, petitioner
said: "I've already got enough trouble with the [squatters who]
threaten to sue me and the position is that the water repairs are
being done, it will make it difficult for you, if you want to
rent it in that way give me in writing that you will not sue me
I'll be happy to rent to you." No one was willing to do so.
Petitioner never collected any rent with respect to the apartment
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