Landlord Can Continue Collecting Cumulative 2.2 Percent Rent Surcharge After 421-a Benefits Expire

(Decision submitted by Lester J. Figueroa of the Manhattan law firm of Borah, Goldstein, Altschuler, Nahins & Goidel, P.C., attorneys for the landlord.)

Landlord sued to evict rent-stabilized tenant who refused to sign the renewal lease landlord offered because it contained a 2.2 percent surcharge applicable under Real Property Tax Law Section 421-a, and because the renewal lease contained a window cleaning charge. The court ruled for landlord. While landlord can't add the 2.2 percent surcharge after the 421-a tax exemption 10-year period expires, Rent Stabilization Code Section 2522.5(e)(2) allows landlord to continue to collect the cumulative 2.2 percent increase charged prior to termination of the 421-a tax benefits. So landlord was entitled to add the 2.2 percent surcharge in the amount of $186 charged prior to termination of the tax benefit. Landlord also was entitled to list window cleaning as a separate charge in tenant's renewal lease. It had done so in each renewal lease since 1979 and increases in that charge were based on rent guidelines. The court awarded landlord a judgment of possession but gave tenant 10 days to renew his lease in order to avoid eviction.

Townhouse Company II, LLC v. Peters: Index No. L&T 68318/16 (Civ. Ct. NY; 10/6/17; Elsner, J) [9-pg. doc.]