In Tan Holding Corp. v. Wallace, 187 Misc.2d 687 (App Term 1st Dept 2001) the tenants were living in loft units pursuant to expired commercial leases in a building also located in an M1-5 district. The landlord knew and acquiesced in the tenants living in the loft units despite the limitation in the leases that the premises were to be utilized for office or studio use. The landlord brought a summary holdover proceeding seeking to evict the tenants. The Housing Court granted the tenants' motion for summary judgment holding that the loft units were subject to rent stabilization protection. The Appellate Term reversed finding that summary judgment should not have been granted. However, it rejected the landlord's argument that there is an absolute exclusion from rent stabilization protection based merely on the zoning classification. The Court stated: "The assertion that residential use is prohibited because the building is situated in a "light manufacturing district" (M1-5) does not, without more evidence, definitively resolve whether the residential use or joint living/working use of the lofts dating back to 1981 would qualify as a permitted use under the applicable Zoning Resolutions - even if new residential development is now excluded in the district. These questions are unanswered in the record and preclude summary determination at this stage of the proceedings."