Tenant Not Notified of 2.2% Increase

Tenant of a 421-a building claimed he was never notified of an additional annual 2.2% rent increase and asked the DHCR if landlord could collect it. In an opinion letter, the DHCR stated that for buildings receiving tax benefits under Real Property Tax Law section 421-a, landlords could include a lease clause providing for special annual rent increases of 2.2 percent of the amount of the unit's first rent. To collect the increase, landlord must provide tenant with a lease rider explaining the rent increase and the approximate end date of the 421-a benefits. Tenant must sign the rider for it to be effective. Tenant submitted copies of this rider to the DHCR but apparently hadn't signed them. The DHCR advised tenant that he could claim improper notice of the 2.2 percent increase if landlord started a nonpayment proceeding based on tenant's failure to pay the 2.2 percent increase.

DHCR Opin. Ltr. by Charles Goldstein (8/7/96) [2-page document]