Landlord Didn't Charge Preferential Rent

April 30, 2009

LVT Number: #21215

Tenant complained of a rent overcharge. Landlord claimed that tenant paid a preferential rent that landlord was permitted to discontinue under the Rent Stabilization Code. The DHCR ruled for landlord. Tenant filed an Article 78 appeal, claiming that the DHCR's decision was arbitrary and unreasonable. The court ruled against tenant, but the appeals court reversed. The language in tenant's 1994 lease showed that the rent charged was the legal regulated rent and was subject to lawful rent increases. There was no preferential rent agreement.

Tenant complained of a rent overcharge. Landlord claimed that tenant paid a preferential rent that landlord was permitted to discontinue under the Rent Stabilization Code. The DHCR ruled for landlord. Tenant filed an Article 78 appeal, claiming that the DHCR's decision was arbitrary and unreasonable. The court ruled against tenant, but the appeals court reversed. The language in tenant's 1994 lease showed that the rent charged was the legal regulated rent and was subject to lawful rent increases. There was no preferential rent agreement. So there was no higher rent that could be used for tenant's 2002 and 2004 renewal lease increases. The DHCR's decision was irrational, and the case was sent back to the DHCR to recalculate the legal rent.

Coffina v. DHCR: NYLJ, 4/6/09, p. 28, col. 2 (App. Div. 1 Dept.; Tom, JP, Mazzarelli, Nardelli, Catterson, Moskowitz, JJ)

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