Preferential Rent Extends Only for Current Tenant's Tenancy

Rent-stabilized tenant complained that landlord failed to send her a copy of the renewal lease she had signed. The DRA ruled for tenant and noted that landlord sent tenant a fully executed copy of the renewal lease after tenant filed her complaint.

Landlord appealed and lost, although the DHCR noted the DRA's order didn't hurt its position. Landlord pointed out that a portion of the DRA's order stated that, "it is noted by this office that the lease submitted by the tenant states 'New LAW Preferential Rent is Legal Rent.' In this case, the preferential rent was established as permanent by a Court stipulation." Landlord claimed that, although HSTPA provides that landlords may charge current occupants only a preferential rent if previously offered, landlord could still preserve the legal regulated rent for future tenancies.

The DHCR found no error in the DRA's ruling. The DRA was merely reciting what was written on the current renewal lease. Both under a court stipulation and HSTPA, tenant maintains a preferential rent for the life of her tenancy. This wasn't in dispute. Landlord also was correct that it may preserve the higher legal regulated rent in future renewal leases and in apartment registrations for the next tenancy. The written notation on the renewal lease didn't affect landlord's rights in this regard. 

Stellar Mgmt.: DHCR Adm. Rev. Docket No. IN410014RO (9/15/20) [2-pg. doc.]