Landlord Can't Stop Charging Preferential Rent

New landlord asked the DHCR if he must continue to offer rent-stabilized tenant a preferential rent. Prior landlord had given tenant a preferential rent to settle a family estate dispute. Prior landlord had registered both the legal regulated rent and the preferential rent. In an opinion letter, the DHCR stated that new landlord must continue to renew tenant's lease at a preferential rent. Rent Stabilization Code Section 2521.2(b) requires landlord to continue to charge the preferential rent until tenant moves out. Landlord can then collect the higher legal rent plus proper increases from the next tenant.

DHCR Opin. Ltr. by Charles Goldstein (7/21/00) [2-pg. doc.]