Landlord Omitted Legal Regulated Rent from One Renewal Lease Listing Preferential Rent

(Decision submitted by Eileen O'Toole, Esq. of the Manhattan law firm of Borah, Goldstein, Altschuler, Nahins & Goidel, P.C., attorneys for the landlord.)

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for landlord, finding that landlord waived the higher legal regulated rent upon lease renewal following the base rent date because that renewal lease omitted reference to the legal regulated rent. Landlord appealed and argued that reference to the preferential rent only in the 2014 renewal lease was an inadvertent error and didn't constitute a waiver of the legal regulated rent. The DHCR ruled against landlord, who then filed an Article 78 court appeal. Landlord, tenant, and the DHCR settled the case. They agreed that the legal regulated rent remained the higher rent, while tenant would be entitled to pay the preferential rent as long as she remained in occupancy. There was no rent overcharge. The case was then sent back to the DHCR, which ruled that landlord didn't waive the higher legal rent in the 2014 renewal lease, and directed that the legal regulated rent and preferential rent be reflected in all of tenant's subsequent renewal leases.  

Rego Park Ventures LLC: DHCR Adm. Rev. Docket No. HM110020RP (2/6/19) [3-pg. doc.]