Landlord Can't Charge More Than Preferential Rent

Tenant complained that landlord didn't renew his rent-stabilized lease on the same terms and conditions as his expiring lease. The DRA ruled for tenant. Landlord appealed and lost. Landlord operated the building under a regulatory agreement to provide affordable housing to low-income and homeless families. Under the agreement landlord was required to register the lower and higher initial rents with the DHCR. And landlord could increase rents to the higher legal rent only when HPD consented to an increase or when an apartment became vacant after the expiration of the restriction concerning homeless families had expired. Landlord had offered tenant a renewal lease that listed only the higher legal rent and included a lease rider informing tenant that future rent increases would be on the higher rent amount. But Rent Stabilization Code Section 2523.5 required landlord to offer the renewal lease on the same terms and conditions as tenant's expiring lease. Landlord charged tenant a lower rent in the prior lease without preserving this amount as a preferential rent via lease rider. So all future rent increases should be based on the lower rent. In addition, charging the higher legal rent violated landlord's regulatory agreement with HPD.

835-37 Trinity Avenue HDFC: DHCR Adm. Rev. Docket No. YL610006RO (8/20/14) [3-pg. doc.]