Prior Landlord Gave 10-Year Rent-Stabilized Lease

New landlord asked the DHCR to establish the legal regulated rent for tenant's rent-stabilized apartment because the rent paid was too low. Landlord claimed that prior landlord gave tenant a sweetheart lease and incorrectly registered the apartment. The 1997 lease set tenant's rent at $420 per month for a 10-year term. Prior landlord didn't charge tenant a vacancy increase over the prior rent when he moved in. In 2007, prior landlord also renewed the lease at $450.45 per month for two years. Landlord claimed that prior landlord may have lacked the capacity to enter the 1997 lease and that there may have been fraud on tenant's part. Otherwise, prior landlord may have charged tenant less than the legal rent because of friendship or work performed by tenant. Prior landlord had now died, and tenant denied new landlord's claims. The DRA ruled against landlord and dismissed the application. Landlord appealed and lost. There was no proof of any wrongdoing by tenant in connection with the initial 10-year lease, and no reference in the lease to a preferential rent. The rent charged was the legal regulated rent.

67 East 7th Street: DHCR Adm. Rev. Docket No. XL420057RO (10/15/10) [6-pg. doc.]