Renewal Lease Signed Before Deregulation Application Remains in Effect

Landlord filed a high-rent/high-income deregulation application on April 1, 2009. The DRA ruled for landlord because tenant’s income was above the $175,000 threshold. The DRA order stated that landlord could revoke tenant’s current renewal lease 60 days after the deregulation order was issued if tenant’s renewal lease contained a deregulation rider notifying tenant that the renewal was subject to revocation upon high-rent deregulation. Tenant appealed, and argued that the 60-day notice shouldn’t apply to her. The DHCR ruled for tenant. Tenant’s current renewal lease was signed before landlord filed its deregulation application. So the deregulation rider didn’t apply, and tenant remained rent stabilized until her current renewal lease expired. At that point, landlord must offer tenant a deregulated lease.

Reingold: DHCR Adm. Rev. Docket No. YB410046RT (4/23/10) [4-pg. doc.]