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Westchester Rent-Stabilized

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Re: Westchester Rent-Stabilized

Postby Landlords Boy » Tue Jul 21, 2020 12:09 pm

TenantNet wrote:...If you don't sign and return it, then yes, the presumption is that your tenancy would be over at the end of the lease, however, there are tenants who stay making various claims. If the lease is incorrect as to level of rent, term of the lease or if the LL has added provisions (legally he cannot do that), then that might be a defense that the offer was improper.
It's possible the original lease may have provisions for "deemed renewal" in case the tenant doesn't return the renewal form. In that case if Mr. Smith doesn't return his renewal he won't be month-to-month at all but renewed for another year or two and he may have to pay an increased rent.
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Re: Westchester Rent-Stabilized

Postby TenantNet » Fri Jul 24, 2020 11:45 am

Haven't had time to research this LLB, but as far as I know, deemed renewals were done away with a few years back and are no longer legal. This has been discussed on this forum a number of times. Search for 'deemed lease' or 'Samson v. Hubert.'

See this post: https://www.landlordvtenant.com/article ... ation-code

And here's a longer discussion: https://www.landlordsny.com/blog/when-a ... anging-law

The “Deemed Renewal” doctrine has recently changed. Rent Stabilization Code 2523.5 PREVIOUSLY said that, “Where a tenant fails to timely renew an expiring lease or rental agreement offered pursuant to this section, and remains in occupancy after the expiration of the lease, such lease…may be deemed to have been renewed…at the legally regulated rent, together with any guidelines adjustments that would have been applicable had the offer of a renewal lease been timely accepted.” BUT THIS IS NOT THE LAW ANYMORE.

Samson Management v. Hubert, 28 Misc3d 29 (App. Term 2nd Dept., 2010), aff’d 92 AD3d 939 (2nd Sept. 2012), changed all that. That case says that if a Rent Stabilized tenant does not sign a renewal lease, the lease is not automatically deemed renewed just because the tenant holds over. Subsequently, the Rent Stabilization Code changed too. Rent Stabilization Code § 2523.5. (Notice for renewal of lease and renewal procedure) now states:

"(c) Where the tenant fails to timely renew an expiring lease or rental agreement offered pursuant to this section, and remains in occupancy after expiration of the lease, such lease or rental agreement may be deemed to be in effect, for the purpose of determining the rent in an overcharge proceeding, where such deeming would be appropriate pursuant to Real Property Law section 232-c. In such event, the expiring lease will be deemed to have been renewed upon the same terms and conditions, at the legal regulated rent, together with any guidelines adjustments that would have been applicable had the offer of a renewal lease been timely accepted. Unless otherwise dictated by Real Property Law section 232-c, the effective date of the rent adjustment under the “deemed” renewal lease shall commence on the first rent payment date occurring no less than 90 days after such offer is made by the owner."

[Emphasis supplied.]

Thus, RSC § 2524.3 only applies to determining a rent overcharge, and then only under certain circumstances.

Moreover, Samson creates the necessity of a fresh inquiry every time a situation like yours arises into whether an unsigned Rent Stabilized lease was renewed. The Scherer and Fisher Landlord and Tenant Text, “Residential Landlord and Tenant Law in New York”, at § 4:184 sums it up well:

"[Samson] will require parties to litigate the issue whether an implied or express lease has been entered into by a Rent Stabilized tenant who holds over and has not signed a renewal lease. Attorneys for both parties will have to explore carefully their clients’ actions that may have created an express or implied lease. It will be interesting to see how this question develops in the future."

Indeed, it will.
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Re: Westchester Rent-Stabilized

Postby Landlords Boy » Fri Jul 24, 2020 2:41 pm

The change only applies to leases that don't have provisions for deemed or automatic renewals. If you dig into RPL 232-C then you find that IF the original lease HAS provisions for such renewals then no month-to-month tenancy is created by an ETPA tenant's failure to return a signed renewal. See M & B Prop. Conv. LLC v. The Meisner Gallery, Inc., 2017.
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Re: Westchester Rent-Stabilized

Postby TenantNet » Fri Jul 24, 2020 3:03 pm

I'll look into it in October, maybe. More or less on vacation :)
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