Court Applies Amended Law Retroactively, Finds Apartment Was Improperly Deregulated

Landlord sued to evict unregulated tenant after tenant's lease expired on May 31, 2017. Tenant claimed that he was rent stabilized and asked the court to dismiss the case. The court ruled for tenant. Tenant moved into the apartment in May 2014 with an unregulated lease at a monthly rent of $1,200. The prior tenant moved out on March 31, 2014, and, at that time, had a lease for a legal regulated rent of $2,395 and a preferential rent of $1,040. The court ruled that where landlord previously charged the prior tenant a preferential rent, the apartment couldn't become deregulated unless the rent was over $2,500 per month at the time the prior tenant moved out. Since the legal regulated rent for the apartment never exceeded $2,500 while prior tenant was there, Rent Stabilization Law Section 25-511(c)(14) applied retroactively and precluded deregulation.  

Rose Realty Assocs. v. Gendelev: Index No. 75160/17; NYLJ No. 1515747447 (Civ. Ct. Kings; 12/27/17; Scheckowitz, J)