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New DHCR policy/fact sheet on Preferential Rents.

NYC Rent Regulation: Rent Control/Rent Stabilized, DHCR Practice/Procedures

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New DHCR policy/fact sheet on Preferential Rents.

Postby TenantNet » Tue Jun 02, 2015 11:30 am

DHCR just released its updated Fact Sheet on Preferential Rents.

You can get it at http://www.nyshcr.org/Rent/FactSheets/orafac40.pdf

One tenant attorney opined:

One new paragraph outlaws the ‘on time discount’ clauses frequently used by landlords:

Since the agency has found that an owner may only demand a late fee of up to 5% of the rent being charged and paid and since preferential rents may not be terminated during a lease term, the agency will not permit an owner to enforce a clause in a rent-stabilized lease that provides that the owner may end a preferential or a discounted rent where the tenant fails to pay the preferential or discounted rent by a certain day of the month.

The agency also prohibits the use of any other lease clause that conditions the payment of a discounted rent based upon the performance of an act by the tenant, such as the tenant’s payment of the rent electronically. The owner’s collection of higher rents based upon these clauses could be challenged by the tenant in a rent overcharge complaint with DHCR or can be reviewed by a court of competent jurisdiction. DHCR can also direct the removal of this type of clause from a lease, if the tenant files a lease complaint.
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