Renewal Lease Incorrectly Applied Preferential Rent Rider Terms

Rent-stabilized tenant complained that landlord failed to offer him a renewal lease in 2017 on the same terms and conditions that were contained in his expiring lease. Tenant claimed that landlord discontinued the preferential rent that he'd had since 2004. In 2004, tenant's lease listed a legal regulated rent of $1,584 and a preferential rent of $900. Tenant also received SCRIE benefits. At the DRA's request, landlord and tenant submitted copies of leases for all periods between 2004 and 2017. The DRA ruled against landlord, finding that landlord offered tenant a preferential rent rider with his 2017 renewal lease.

Tenant appealed and won. Tenant pointed out that his 2004 preferential rent rider states that his rent would be increased upon each renewal at lawful rent increases over the preferential rent. Since the 2017 renewal offer didn't apply applicable rent guidelines to the increased preferential rent offered, the renewal offer was improper. Landlord must send tenant a corrected renewal offer. And, if tenant was overcharged by any disregard of the preferential rent rider provisions, he could file a complaint for rent overcharge.

Beberaggi: DHCR Adm. Rev. Docket No. GV410014RT (6/11/19) [3-pg. doc.]