Landlord Can Discontinue Preferential Rent

(Decision submitted by Scot Mackoff of the Manhattan law firm of Mitofsky Shapiro Neville & Hazen LLP, attorneys for the landlord.) Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Tenant claimed that she had a preferential rent agreement and that landlord was now charging her more than allowed. Landlord asked the court to dismiss tenant's claim without a trial. The court ruled for landlord. Tenant appealed and lost. The preferential rent agreement in tenant's lease didn't provide that it had to continue for her entire tenancy. So landlord was allowed to discontinue the preferential rent upon lease renewal. Tenant also claimed that the Rent Stabilization Code amendment permitting landlord to discontinue the preferential rent was invalid, but there was no showing that the code provision was arbitrary and unreasonable.

EQR 180 Riverside A, LLC v. Chu: 2009 NY Slip Op 50523(U) (3/26/09) (App. T. 1 Dept.; McKeon, PJ, Schoenfeld, Heitler, JJ)