Landlord Must Continue Preferential Rent

Landlord sued to evict rent-stabilized tenant, claiming that tenant refused to sign a renewal lease offered by landlord. Tenant claimed that the renewal lease was improper because it discontinued a preferential rent granted tenant under his initial lease. The court ruled for tenant. Landlord asked for reconsideration, arguing that a 2003 amendment to the Rent Stabilization Law and a prior court precedent stated that landlords weren't required to renew rent-stabilized leases at preferential rents. After reviewing its prior decision, the court again ruled against landlord. The initial lease didn't specify whether the preferential rent was to remain in force for a definite or indefinite period. Because the lease language was unclear, it had to be interpreted against the party that wrote the lease. The Rent Stabilization Law and higher court ruling allowed landlords to refuse to continue preferential rents only if the lease granted a preferential rent for a limited term. In this case, there was no lease language limiting the preferential rent to the term of the initial lease.

East Side Managers Associates Inc. v. Goodwin: NYLJ, 12/12/07, p. 26, col. 1 (Civ. Ct. NY; Marton, J)