Tenant Moved into New Building for Landlord's Benefit

Tenant complained to the DHCR about a renewal lease landlord offered tenant in 2015. Tenant had lived in a different building owned by landlord at a rent-stabilized rent of $735. But tenant then moved to another building owned by landlord at landlord's request due to renovation work in the first building. Tenant continued to pay $735, but was then offered a renewal lease at $1,541. Landlord claimed that tenant moved voluntarily and signed a vacancy lease at a monthly rent of $1,500 with a preferential rent of $775. The renewal lease offered discontinued the preferential rent. The DRA ruled for tenant and found that tenant moved for landlord's benefit. Tenant was entitled to a renewal lease, using the prior $735 rent as the base rent.

Landlord appealed and lost. Tenant had submitted proof that the move was done strictly for the landlord's benefit, to facilitate completion of building renovation and because required services weren't being maintained at the building. Among other things, landlord had sent tenants a letter stating that it wouldn't be renewing leases and that they could make arrangements with landlord to vacate their apartments. Landlord's intent was to convert the rent-stabilized building into a homeless shelter. It didn't matter that tenant didn't sign a relocation agreement. The vacancy lease that tenant signed for the new apartment was void.

3905 Associates LLC: DHCR Adm. Rev. Docket No. FQ610004RO (2/2/18) [4-pg. doc.]