Case Type

Holdover-Lease Expiration

Housing Type

Rent Stabilized

Court

Civil Court of the City of New York

County

New York County (Manhattan)

L&T / Index / Case / Docket / Clerk's Number

LT 74208/19

Petitioner

West Side Marquis LLC

Respondent

BRENDA DE JOURDAN, EVELYN DE JOURDAN, ELAN DE JOURDAN, "JOHN DOE" & "JANE DOE"

Judge

Chinea, Daniele

Decision/Order Date

2022-08-05

Posture

Post-answer Motion by Tenant

Disposition

Motion Granted for Tenant, Case Dismissed/discontinued

Winner

Tenant Substantially Won

Synopsis

In short, the issue is if a successor to a rent stabilized apartment is also entitled to the previous chargeable rent (“preferential rent”) or the legal regulated rent. This case involved a complicated agreement (“WSM Agreement”) that was structured when the subject premises came out of the Mitchell-Lama program. Tenants were to pay a lower “preferential” rent called an Adjustable Collectible Rent (""ACR""). However, the tenants agreed that ""successors shall have no right to pay the ACR or any rent other than the LRR for any apartment at the time of succession"", unless they met a very narrow exception.

HSTPA passed in 2019 and effectively made preferential rents permanent. Judge Chinea ruled that the HSTPA invalidated the clause in the WSM Agreement and successors are entitled to the preferential rent.

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