Romero v. New York State Division of Housing & Community Renewal

16 Misc. 3d 484
CourtNew York Supreme Court
DecidedApril 5, 2007
StatusPublished
Cited by2 cases

This text of 16 Misc. 3d 484 (Romero v. New York State Division of Housing & Community Renewal) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Romero v. New York State Division of Housing & Community Renewal, 16 Misc. 3d 484 (N.Y. Super. Ct. 2007).

Opinion

OPINION OF THE COURT

Emily Jane Goodman, J.

Petitioners Christopher Romero and Monica Summers seek the reversal of the petition for administrative review (PAR), issued on March 22, 2006, in which respondent New York State Division of Housing and Community Renewal (DHCR) denied petitioners’ PAR and affirmed the order of the Rent Administrator which rejected petitioners’ claim that they were entitled to a renewal lease for their apartment at 448 West 54th Street, New York, New York, at a preferential rent.

Both DHCR and respondent landlord, 448 W 54th St. Corp., submit answers seeking dismissal of the petition.

Petitioners are tenants of record in apartment SB at 448 West 54th St., where they have been residing since 1995, pursuant to a lease which contains a preferential rider that states as follows:

“The parties to this lease agree and acknowledge that the tenant will be charged, during the term of the tenant’s occupancy, a preferential rent. The preferential rent is personal to the tenant named in the lease only and will not inure to the benefit of the tenant’s successors or assigns.”

At the time that petitioners entered into the lease agreement their building was owned by Paramus Properties Associates, LP At some time during their tenancy, petitioners’ building was purchased by 448 W. 54th St. Corp. (the owner). In 2004, petitioners received a renewal lease from the owner based upon the legal regulated rent rather than their previous preferential rent.

Shortly after they received the renewal lease, petitioners learned that another tenant in their building, Jeffrey DoigMarx, whose original lease contained the same preferential rent rider as theirs, had obtained a decision from the Civil Court requiring the landlord to renew his lease based upon the preferential rent rather than the higher legal regulated rent. (448 W. 54th St. Corp. v Doig-Marx, 5 Misc 3d 405 [Civ Ct, NY County 2004], affd 11 Misc 3d 126[A], 2006 NY Slip Op 50199[U] [App Term, 1st Dept 2006].)

On or about August 18, 2004, petitioners filed a complaint of owner’s failure to renew lease with DHCR complaining that the [486]*486landlord had refused to renew their lease at the preferential rent. The owner submitted an answer asking, inter alia, that DHCR stay the determination of petitioners’ complaint pending the owner’s appeal of the Doig-Marx decision.

On or about December 9, 2005, the DHCR Rent Administrator denied petitioners’ complaint stating that DHCR was not bound by the ruling of the Civil Court in Doig-Marx because it had not been made a party to that case, and concluding that, pursuant to chapter 82 of the Laws of 2003, as amended, the owner had the option to charge a higher rent on renewal of the lease provided that the legal regulated rent was previously established. The Rent Administrator therefore directed petitioners to sign the renewal lease.

On or about January 6, 2006, petitioners filed a PAR, which was denied by DHCR on March 22, 2006. In its decision, DHCR reiterated that, because it was not made a party to the DoigMarx case, it was not bound by the Civil Court decision, and additionally found that:

“the rider granting a preferential rent for the duration of the tenants’ occupancy executed by the tenants and the prior owner in 1995 merely stated the law as it existed at the time it was executed. Before the law was amended in 2003, a preferential rent continued for the duration of the tenant’s occupancy. The Commissioner submits that the owner or its predecessor could not have foreseen the change in the law that would come eight years later and therefore the owner or its predecessor could not have intended to relinquish a right not yet granted.”

On February 21, 2006, the Supreme Court, Appellate Term, affirmed the ruling of the Civil Court in the Doig-Marx case which directed the landlord to renew Doig-Marx’s lease based upon the preferential rent rider.

Both DHCR and the landlord rely on chapter 82 of the Laws of 2003, amending the Emergency Tenant Protection Act and the Rent Stabilization Law, which states:

“where the amount of rent charged to and paid by the tenant is less than the legal regulated rent for the housing accommodation, the amount of rent for such housing accommodation which may be charged upon renewal or upon vacancy thereof may, at the option of the owner, be based upon such previously established legal regulated rent, as adjusted by the [487]*487most recent applicable guidelines increases and any other increases authorized by law.” (Administrative Code of City of NY § 26-511 [c] [14].)

Both the owner and DHCR contend that chapter 82 gives the owner the power to unilaterally abrogate its prior agreement with the tenant.

Several courts have now examined chapter 82, its history, and its effect on preferential rent riders such as the rider involved in this case. Recently, the impact of the rider was considered in the case of Rupert v 31 E. 1st St. Assoc. LP (Sup Ct, NY County, Dec. 6, 2005, Friedman, J., Index No. 115590/04). As the court noted, chapter 82 was proposed in response to the decision of the First Department in Matter of Missionary Sisters of Sacred Heart, Ill. v New York State Div. of Hous. & Community Renewal (283 AD2d 284 [1st Dept 2001]; see also 448 W. 54th St. Corp. v Doig-Marx, 5 Misc 3d 405 [2004], supra). Missionary Sisters held that, where the preferential rent rider was for a limited term, the landlord was not required to continue the lower rent in the renewed lease. Prior to Missionary Sisters, DHCR had taken the position that the preferential rent must be continued until the tenant vacated the apartment, even where the preferential rider was for a limited period. Examining the language of chapter 82, the Rupert court concluded that the amendment was not intended to void preferential rent agreements negotiated by the parties which by their terms were intended to last for the duration of the tenant’s occupancy. As the Rupert court noted, several other courts which have considered the impact of chapter 82 on such preferential rent riders have consistently held that “the 2003 amendment was not intended to preclude the parties to a lease or stipulation from agreeing to a rent preference that would endure beyond the term of the lease into renewal periods.” (Aijaz v Hillside Place, LLC, 8 Misc 3d 73, 76 [App Term, 2d & 11th Jud Dists 2005]; see also Colonnade Mgt., LLC v Warner, 11 Misc 3d 52 [App Term, 1st Dept 2006]; 448 W. 54th St. Corp. v DoigMarx, 5 Misc 3d 405 [2004], supra; Matter of Sugihara v State of N.Y. Div. of Hous. & Community Renewal Off. of Rent Admin., 13 Misc 3d 1239[A], 2006 NY Slip Op 52186[U] [Sup Ct, NY County, Madden, J.].) In Les Filies Quartre LLC v McNeur (9 Misc 3d 179 [Civ Ct, NY County 2005]), where a preferential rent rider for the term of the lease was contained in several earlier leases, but not in renewal offers subsequent to 1995, the court held that chapter 82 enabled the landlord to renew without offering the preferential [488]*488rent rider. In so holding, however, the court specifically noted that chapter 82 did not negate a preferential rider which, by its terms, lasted for the occupancy. Even the case of Matter of Chibel v New York State Div. of Hous. & Community Renewal (Sup Ct, NY County, Apr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

218 East 85th Street, LLC v. Division of Housing & Community Renewal
23 Misc. 3d 557 (New York Supreme Court, 2009)
Rosenshein v. Heyman
18 Misc. 3d 109 (Appellate Terms of the Supreme Court of New York, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
16 Misc. 3d 484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/romero-v-new-york-state-division-of-housing-community-renewal-nysupct-2007.