Preferential Rent Agreement Continues upon Lease Renewal

Tenant complained of a rent overcharge. Although tenant's initial lease contained a preferential rent agreement, landlord increased tenant's rent upon renewal based on legal regulated rent. The DRA ruled against tenant. The Rent Stabilization Law was changed in June 2003 to permit landlords to discontinue preferential rents upon lease renewal. Tenant appealed and won. Tenant argued that his preferential rent agreement was still valid. The DHCR said that landlord signed a preferential rent agreement with tenant after June 20, 2003, which stated that landlord would charge tenant a preferential rent for as long as tenant remained in occupancy. Therefore, it appeared that tenant may still have a right to a preferential rent. The DHCR sent the case back to the DRA for further consideration.

Barales: DHCR Adm. Rev. Docket No. UF210053RT (9/7/06) [2-pg. doc.]