Landlord Can Collect $60 Renewal Increase Under RGBO 41

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant, finding that landlord wasn't entitled to collect the $60 monthly rent increase set under Rent Guidelines Board Order (RGBO) No. 41 for certain lower rents instead of the 6 percent increase otherwise applicable. Landlord appealed and won. At the time landlord offered tenant a renewal lease for the period commencing on Aug. 1, 2010, a court decision was in effect barring the $60 rent increase. But later, New York's highest court approved the increase in the case of Casado v. Markus. Landlord had advised tenant of the final court decision by letter in April 2011 and told tenant it would seek to collect retroactive and prospective rent increases resulting from the court's order. Tenant's renewal lease also contained a clause permitting an adjustment to the rent during the term of the lease because of an order from the DHCR or the RGB. Landlord also had an agreement with the building's tenant association concerning the collection of preferential rents, which permitted landlord to collect any increase permitted by law. 

SP 96-97 LLC: DHCR Adm. Rev. Docket No. BR410038RO (7/8/14) [3-pg. doc.]