Successor Tenant Entitled to Renewal Lease on Terms That Applied to Tenant's Lease

Landlord sued to evict rent-stabilized tenant's family member after tenant died. The family member claimed succession rights to the apartment on the same terms as provided in tenant's lease. Landlord asked the court to dismiss the family member's claim that she was entitled to a renewal lease on the same terms as tenant's lease. Landlord pointed out that tenant had lived in a rent-controlled apartment in a different building until 2005, when she and landlord, each represented by attorneys, signed a settlement agreement in a prior case providing that tenant would surrender her old apartment, take a rent-stabilized lease for her new apartment at $850 per month with a lifetime preferential rent of $226 per month, and that the preferential rent was personal to tenant only for the rest of her life. The agreement also stated that landlord could give tenant a renewal lease every two years although tenant's rent would remain $225 per month. And, if tenant moved out, landlord would pay tenant a $25,000 stipend. 

The court ruled against landlord. Landlord's agreement with the deceased tenant nowhere contained any provision that she remain as the sole apartment occupant. And, as a rent-stabilized tenant, the deceased tenant couldn't waive the benefits of the law. Tenant died after the effective date of the HSTPA, which amended the rent stabilization law to state that renewal lease rents would be no more than the applicable guidelines increase applied to the last rent paid prior to the renewal. A successor tenant is entitled to a renewal lease, not a vacancy lease, and to a renewal lease on the same terms and conditions as the tenant being succeeded. 

Ocean Props. LLC v. Sierra: Index No. 312184/23, 2024 NY Slip Op 33107(U)(Civ. Ct. Kings; 9/3/24; Harris, J)