Landlord Must Renew Rent-Stabilized Lease at Preferential Rent

LVT Number: 19607

Rent-stabilized tenants complained to the DHCR that landlord offered an improper renewal lease. A rider included in tenants' first lease in 1995 gave them a preferential rent. The lease stated that the preferential rent would continue for the term of tenants' occupancy. Landlord argued that 2003 changes to the Rent Stabilization Code permitted landlord to discontinue lease renewals at the preferential rent. Landlord claimed that the initial lease rider merely stated the law at the time, which was now changed. The DHCR ruled for landlord and dismissed tenants' complaint.

Rent-stabilized tenants complained to the DHCR that landlord offered an improper renewal lease. A rider included in tenants' first lease in 1995 gave them a preferential rent. The lease stated that the preferential rent would continue for the term of tenants' occupancy. Landlord argued that 2003 changes to the Rent Stabilization Code permitted landlord to discontinue lease renewals at the preferential rent. Landlord claimed that the initial lease rider merely stated the law at the time, which was now changed. The DHCR ruled for landlord and dismissed tenants' complaint. Tenants appealed and won. Tenants' initial lease rider contained an agreement to renew tenants' rent based on the preferential rent, as long as they lived in the apartment. This agreement was enforceable as a matter of contract law.

Romero v. DHCR: NYLJ, 5/2/07, p. 21, col. 1 (Sup. Ct. NY; Goodman, J)