Landlord Not Limited to Guidelines Increase When Renewing Preferential Rent Pre-HSTPA

Rent-stabilized tenant complained to the DHCR in April 2019 of rent overcharge. The DRA ruled against tenant, who appealed and lost.  Tenant argued that landlord had illegally raised her preferential rent beyond the applicable rent guidelines increase when it renewed her lease in 2017. But prior to enactment of Rent Stabilization Law amendments by HSTPA made effective on June 14, 2019, landlord wasn't bound by rent guideline increase levels when increasing preferential rents. Landlord could increase tenant's preferential rent in 2017 by any amount as long as it wasn't more than the previously established legal regulated rent. In this case, the 2017 LRR was $1,189 and the preferential rent charged was $753.  In addition, landlord complied with HSTPA amendments when renewing the preferential rent for subsequent renewal leases in 2019 and 2021, where it applied rent guideline increases to increase tenant's preferential rent.

Foster: DHCR Adm. Rev. Docket No. LW610002RT (1/8/24)[3-pg. document]