Rent-stabilized tenants sued New York City Rent Guidelines Board to revoke parts of Rent Guidelines Board Orders (RGBOs) 40 and 41, which set minimum dollar increases for tenants paying less than $1,000 per month and resulted in a higher percentage rent increase for them. The court ruled for tenants, finding that the RGBOs unfairly penalized long-term rent-stabilized tenants who paid lower rents by effectively doubling the percentage rent increase chargeable under RGBOs 40 and 41, and that the RGB had overstepped its authority under the Rent Stabilization Law.
Rent-stabilized tenants sued New York City Rent Guidelines Board to revoke parts of Rent Guidelines Board Orders (RGBOs) 40 and 41, which set minimum dollar increases for tenants paying less than $1,000 per month and resulted in a higher percentage rent increase for them. The court ruled for tenants, finding that the RGBOs unfairly penalized long-term rent-stabilized tenants who paid lower rents by effectively doubling the percentage rent increase chargeable under RGBOs 40 and 41, and that the RGB had overstepped its authority under the Rent Stabilization Law. The RGB appealed and lost. The RGB went beyond its authority to set maximum rent rates by creating a new class of rental accommodation. Only the New York City Council had the authority to do this.
Casado v. Markus: Index No. 402267/08 (6/22/10) (App. Div. 1 Dept.; Gonzalez, PJ, Andrias, Catterson, Renwick, Manzanet-Daniels, JJ)
