Landlord Must Renew Tenant's Lease at Preferential Rent

Rent-stabilized tenant complained of a rent overcharge. She also said that landlord offered her an improper renewal lease. Tenant's initial lease included a preferential rent rider. But when landlord renewed tenant's lease in 2007, it refused to continue the preferential rent. So tenant was charged increases based on a rent of $1,534 instead of $1,358. The DRA ruled against tenant, finding that landlord had the option under Rent Stabilization Code Section 2521.2 to discontinue the preferential rent. Tenant appealed, arguing that the preferential rent should continue for as long as she lived in the apartment. The DHCR ruled for tenant. Tenant's lease stated that "all subsequent renewals of the lease with the undersigned tenant(s) will be based upon the preferential amount." Since landlord had agreed in tenant's lease to continue the preferential rent for as long as tenant lived in the apartment, the Rent Stabilization Law requires landlord to renew the lease on the "same terms and conditions." So landlord must continue the preferential rent.

Sharp: DHCR Adm. Rev. Docket No. WH410033RT (12/23/08) [2-pg. doc.]