Amended RSL Provision Concerning Preferential Rent Applied Retroactively

LVT Number: #29950

Landlord sued to evict unregulated tenant. Tenant claimed that the apartment was rent stabilized. Tenant pointed to Rent Stabilization Law (RSL) Section 26-511(c)(14), which was amended in 2015 to provide an exception from vacancy deregulation where the prior tenant received a preferential rent. Landlord argued that the RSL amendment was added after the apartment became deregulated, and should be applied only prospectively. The court disagreed and ruled for tenant. The RSL amendment retroactively kept the apartment under rent stabilization.

Landlord sued to evict unregulated tenant. Tenant claimed that the apartment was rent stabilized. Tenant pointed to Rent Stabilization Law (RSL) Section 26-511(c)(14), which was amended in 2015 to provide an exception from vacancy deregulation where the prior tenant received a preferential rent. Landlord argued that the RSL amendment was added after the apartment became deregulated, and should be applied only prospectively. The court disagreed and ruled for tenant. The RSL amendment retroactively kept the apartment under rent stabilization. Therefore, the holdover petition stating that the apartment was deregulated was fatally defective because it didn't state the proper regulatory status of the premises.

191 Realty Assocs. v. Tejeda: Index No. 82076/17, NYLJ No. 1548749636 (Civ. T. NY; 12/27/19; Thermos, J)