DHCR to Decide if Landlord Must Continue Charging Preferential Rent

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Tenant claimed that landlord had collected a rent overcharge. Landlord had given her a preferential rent agreement with each prior renewal lease. Tenant refused to sign the current renewal lease because no preferential rent was offered. Tenant had filed a complaint with the DHCR based on her claim that landlord didn't offer a proper lease renewal. The court ruled that the DHCR should decide the preferential rent question because tenant had already raised the issue before that agency. In the meantime, until the DHCR decides the case, tenant should continue paying a preferential rent consistent with the prior renewal leases. The court noted that the DHCR should rule for tenant based on a prior settlement agreement giving tenant the right to renewals at preferential rents.

45-55 Realty LLC v. Covin: NYLJ, 7/20/06, p. 24, col. 3 (Civ. Ct. Kings; Heymann, J)