Renewal Lease Offer Was Improper

Landlord sued to evict rent-stabilized tenant for failure to renew his lease. The housing court ruled against landlord and dismissed the case. Landlord appealed and lost. It was undisputed that the prior landlord didn't give tenant the option of choosing either a one-year or two-year vacancy lease when she moved into the apartment. The initial lease tenant received was for a one-year term only and also didn't include a rent stabilization rider. The housing court dismissed the case pursuant to CPLR 409(b) because prior landlord wasn't entitled to the 18 percent vacancy increase added to the legal regulated rent in tenant's initial lease. Since landlord failed to prove that it was entitled to collect a vacancy increase under the improper initial lease, and the subsequent increase in the legal regulated rent offered in the renewal lease was based on the improper initial rent, tenant properly refused to sign the offered renewal lease. The lower court therefore properly dismissed the case. 

Ink 967-969 Willoughby, LLC v. Cordero: Index No. 2021-109KC, 2022 NY Slip Op 50063(U)(App. T. 1 Dept.; 1/28/22; Aliotta, PJ, Toussaint, Golia, JJ)