Landlord Can Collect Higher Amount Permitted by DHCR Order

(Decision submitted by Karen Weiss of the Manhattan law firm of Rosenberg & Estis, P.C., attorneys for the landlord.) Landlord sued to evict tenant for nonpayment of rent. Tenant claimed landlord gave up the right to collect the amount of rent demanded. In 1987, the DRA had set the apartment rent at $285 per month. Landlord filed a PAR challenging that DRA ruling. In 1990, while landlord's PAR was pending, landlord and tenant signed a lease setting tenant's rent at $330 per month, an authorized increase over $285 under the applicable rent guideline board order. The 1990 lease, unlike tenant's prior lease, didn't make this rent amount subject to any increase that might result from the DHCR's final determination of tenant's lawful rent. In 1994, the DHCR revoked its 1987 order and increased tenant's rent retroactively. The court ruled that landlord didn't give up its right to collect a future increased rent when it signed tenant's 1990 lease. Landlord wasn't required to include language in the 1990 lease that conditioned the 1990 rent upon resolution of its PAR. The DHCR's 1994 order set the lawful rent and tenant didn't appeal that order.

Express Manor Apartments v. Blum: L&T Index No. 62171/98 (5/14/98) (Civ. Ct. NY; Acosta, J) [5-page document]