Tenant Gets Renewal Lease at Preferential Rent

Tenant complained that landlord offered her an improper renewal lease. Tenant's prior renewals were based on a preferential rent granted in her initial lease. Landlord claimed that it no longer had to renew at a preferential rent in light of the 2003 amendment to Rent Stabilization Law Section 26-511. The DRA ruled for landlord and dismissed tenant's complaint. Tenant appealed, pointing out that the preferential rent rider that was included with all her leases since 1988 stated that "when the tenant moves out, the owner can compute and charge the new rent based on the following: 1) the legal registered rent, 2) a guidelines increase, plus 3) a vacancy lease allowance." The DHCR ruled for tenant. A plain reading of the preferential rent rider shows that landlord and tenant agreed that the preferential rent would continue as long as tenant lived in the apartment. The preferential rent agreement wasn't limited to a specific lease term. Although the DHCR had ruled differently in some prior cases, this was incorrect in light of more recent court decisions on this issue.

Polyak: DHCR Adm. Rev. Docket No. UI410003RT (11/1/07) [3-pg. doc.]