Landlord Waived Its Right to Collect Higher Rent Increase

Tenant complained of landlord's failure to offer a proper rent-stabilized renewal lease. The DRA ruled for tenant and found that a $195 rent overcharge resulted from the improper renewal lease given to tenant. Landlord appealed and lost. Landlord argued that the $890 monthly rent offered in the renewal lease was based on rent increases authorized by the Rent Guidelines Board in Order Nos. 40 and 41, which New York's highest court approved in Casado v. Markus in 2011. Those rent guidelines called for a minimum dollar increase for 2008 and 2009 that were higher than the guideline percentage increases authorized for those years in certain circumstances. Landlord argued that there was no set time limit when landlord could collect the rent increase that was in question until the court decision was issued, and that it could collect the rent increase retroactively. The DHCR disagreed and found that waiting seven years after the Casado decision to enforce higher rent increases was unreasonable. Landlord was deemed to have waived its right to collect a higher rent increase from tenant.

88-22 Parsons Blvd., LLC: DHCR Adm. Rev. Docket No. GV110005RO (8/13/19) [4-pg. doc.]