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2019 PREFERENTIAL RENT RIDER - Rent Stabilize apt

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

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2019 PREFERENTIAL RENT RIDER - Rent Stabilize apt

Postby karen hall » Tue Aug 13, 2019 4:43 pm

I Received my new lease renewal this week (to be in effective 11/01/2019. I am on preferential rent and always receive a rider that states: PREFERENTIAL RENT LIMITED - Tenant understands that this agreement to charge preferential rent is limited to the term of this renewal lease only and that at the end of the lease the preferential rent will end and at the landlord discretion you may be charged t all future rents based upon the current legal regulated rent. Tenant agrees that the preferential rent is limited and may end upon renewal of this lease. And i always sign it without a fuss because that was the law. Landlord had the option of removing the discount and charging the legal rent.

My concern is why did they send the same rider if the new law states preferential rent is for the remainder of tenancy and the legal rent can only be charged if i move out? I am refusing to sign the preferential rent lease rider but i will sign the lease. I think its a trick. I think I will also send a letter to address the preferential rider inconsistency with the new law.

Any thoughts? Anyone received a new rider since the new laws passed in June?
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Re: 2019 PREFERENTIAL RENT RIDER - Rent Stabilize apt

Postby TenantNet » Tue Aug 13, 2019 5:02 pm

Well, some LLs are lazy, stupid or intent on tricking the tenant. Yes, the law did change on PR. But always the two sides will disagree on interpretation. See https://therealdeal.com/2019/07/19/wide ... ent-hikes/

With many aspects of the new laws, people are waiting for guidance from DHCR or case law as things get litigated. I don't know of either yet.

DHCR stated (somewhat evasively), "“For tenants with preferential rents and who have a renewal lease with an occupancy date on or after June 14th, the new law applies,” said Brian Butry, a spokesperson."

Here's what I suggest ... return the unsigned lease to the LL (by certified mail) telling them that the law has changed (include a copy), that you are willing to sign a new 1 or 2 year renewal lease, but must do so only when the lease offer is legal.

Or - as you are thinking - you could sign just the lease and not the rider. If you do that, return the signed lease to the LL by cert. mail (but not the rider). I would add to the lease language that you are signing just the lease, not the PR rider as what was in the offered rider is in violation of the new and current law.

If you want to be cautious, you could put that explanation on a separate piece of paper and staple it to the lease offer, and take photos of the 2 pages stabled together. That way the LL can't come back and falsely claim you altered the lease.
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Re: 2019 PREFERENTIAL RENT RIDER - Rent Stabilize apt

Postby karen hall » Tue Aug 13, 2019 5:27 pm

Thanks! yes I think I will sign the lease but not the rider with the incorrect language. I think its a trick for those who do not know the law.
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Re: 2019 PREFERENTIAL RENT RIDER - Rent Stabilize apt

Postby Landlords Boy » Wed Aug 14, 2019 10:40 am

The "preferential lease limited" clause is not rendered illegal by the new rent law. Rather, it has become unenforceable. If the law changes again the clause may again become enforceable. Therefore the clause remains in the renewal lease rider.
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Re: 2019 PREFERENTIAL RENT RIDER - Rent Stabilize apt

Postby TenantNet » Wed Aug 14, 2019 10:53 am

Sure, my LL gave me a renewal lease stating the new rent would be $10,000 per month. He said it's not illegal, just unenforceable.

It's bullshit, illegal, and also intimidation and harassment. Taking lessons from Donald Trump?
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Re: 2019 PREFERENTIAL RENT RIDER - Rent Stabilize apt

Postby Landlords Boy » Wed Aug 14, 2019 11:27 am

TenantNet wrote:Sure, my LL gave me a renewal lease stating the new rent would be $10,000 per month. He said it's not illegal, just unenforceable.

Red herring: the amount of renewal rent is not the complaint. As long as the renewal rent complies with the current law there is nothing illegal about the preferential rent limited clause, it is just unenforceable at the present time. The landlord should explain this to the tenant.
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Re: 2019 PREFERENTIAL RENT RIDER - Rent Stabilize apt

Postby Landlords Boy » Wed Aug 14, 2019 11:51 am

karen hall wrote:Any thoughts? Anyone received a new rider since the new laws passed in June?
Another reason the text of renewal riders has not changed is because HCR has not yet issued updates for its own rider for rent-stabilized apartments.

I did contact them about this. HCR did not say when new riders would be available but emphasized that landlords should continue to issue timely renewals.
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Re: 2019 PREFERENTIAL RENT RIDER - Rent Stabilize apt

Postby TenantNet » Wed Aug 14, 2019 12:08 pm

Actually there is. The PR becomes the legal rent, so to represent the legal rent as something that it's not, well that is illegal and it's harassment. Even if a LL knows something is "unenforceable," tenants don't, and if they go ahead and pay something (or just have fear of what might happen if they don't) that is not required to be paid, well that is illegal.

And putting an illegal rent in a lease renewal doesn't preserve the LLs rights.

Yes, DHCR has not - to my knowledge - issued updates. But a LL can provide for that eventuality with a side letter, but issuing an old rider that is blatantly illegal, is harassment, and is illegal. Even RSA and LvT recommend that. And DHCR did issue a statement on this. See the article.
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Re: 2019 PREFERENTIAL RENT RIDER - Rent Stabilize apt

Postby Landlords Boy » Wed Aug 14, 2019 3:58 pm

TenantNet wrote:Actually there is. The PR becomes the legal rent -
Gotta watch out for confusing language here: the phrase "legal rent" is too similar to the phrase "legal regulated rent" so I try to avoid the phrase "legal rent" entirely. It is important to realize that the new law does NOT re-set the legal regulated rent to the current level of preferential rent. Rather, it mandates applying RGB rent increases to the preferential rent paid by the current tenant rather than the legal regulated rent.

Even if a LL knows something is "unenforceable," tenants don't, and if they go ahead and pay something (or just have fear of what might happen if they don't) that is not required to be paid, well that is illegal.
If the increase in rent the LL asks for in the renewal does not exceed the maximum allowable under the new law then all is well.

...but issuing an old rider that is blatantly illegal, is harassment, and is illegal.
If the renewal rent agrees with the new law then how is it harassment? It is not.

We're all waiting for new regulations, forms, and guidance from DHCR. This part of the whole shebang could have been alleviated if there had been a decent delay with implementation (say, four months) rather than "immediately". What do you think the purpose of that was?
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Re: 2019 PREFERENTIAL RENT RIDER - Rent Stabilize apt

Postby karen hall » Wed Aug 14, 2019 4:34 pm

“implementation (say, four months) rather than "immediately". What do you think the purpose of that was?[“

Do you know how many PR rent landlords would have removed if they had given an effective date 4 months later or for 2020? Come on lol.
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Re: 2019 PREFERENTIAL RENT RIDER - Rent Stabilize apt

Postby TenantNet » Wed Aug 14, 2019 4:42 pm

Karen,

He's referring to the new law passed in Albany. Parts of the law are to take effect immediately and other parts come online over a period of time. He's complaining that certain parts occur too soon for his comfort. But he does have a point that DHCR takes time to come up with rules and regulations, perhaps too long. For that complain to the legislature for not giving DHCR sufficient budget to hire people to do the work. And then complain to DHCR for intentionally dragging its feet, whether or not it has the funding.

Also, complain to Cuomo for defunding DHCR over the last 8 years.

But the general complaint is that it occurs too soon. Perhaps he should go back to 1997 and 2003 when various pro-landlord laws were implemented immediately. Yes, tenants complained about that as well, but many tenants were screwed over the immediate implementation.

It worked for LLs back then, so stop complaining now when it helps tenants.
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Re: 2019 PREFERENTIAL RENT RIDER - Rent Stabilize apt

Postby karen hall » Tue Sep 10, 2019 4:28 pm

UPDATE: I didnt sign the previous preferential rent rider. I signed the lease and wrote them a letter outlining my reasons for not signing. They called me to explain why they sent the old rider and immediately sent me a revised rider with the correct wording that agrees to the 2019 HSTPA.
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Re: 2019 PREFERENTIAL RENT RIDER - Rent Stabilize apt

Postby TenantNet » Tue Sep 10, 2019 5:14 pm

You mean there's a landlord that complies with the law? No way.
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Re: 2019 PREFERENTIAL RENT RIDER - Rent Stabilize apt

Postby Landlords Boy » Wed Sep 11, 2019 1:35 pm

DHCR just issued the revised riders in the past few days. However, landlords are not REQUIRED to use them until the "effective date for implementation", October 24th, 2019.
Landlords and tenants can continue to use the old forms until then, though "in all circumstances, the requirements of HSTPA are in effect as of June 14, 2019": https://hcr.ny.gov/system/files/documen ... 2019-1.pdf

Update: despite what the Advisory reads, the new LR1 for NYC is available. However, the new RTP-8 forms have not been posted yet.
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Re: 2019 PREFERENTIAL RENT RIDER - Rent Stabilize apt

Postby TenantNet » Wed Sep 11, 2019 2:12 pm

The new rider is at https://hcr.ny.gov/system/files/documen ... RA-LR1.pdf

However, on page 3 DHCR continues the practice of demanding tenants provide written acknowledgment of receipt of the rider. This is not required and not recommended, although some landlords think it is.

If a landlord withholds executing a renewal lease if a tenant will not sign the form, it is the same as a landlord illegally refusing to renew a lease, and the rent will not increase until the landlord provides the executed lease.

In such situations, tenant can continue to pay the old rent.
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