Landlord Offers Proper Lease to Family Member

Tenant complained that landlord offered him an improper lease. Tenant's grandmother was prior landlord until she died in February 2007. She had allowed tenant to live in the apartment since 1994 at a rent of $400 per month without any increase. New landlord consisted of six other family members who inherited the building. They said that prior landlord had allowed other family members to live in the building at similar rents without leases or rent increases. New landlord offered tenant a rent-stabilized lease at a rent of $1,000, with a preferential rent rider allowing tenant to pay $400 per month until the building was sold. Landlord claimed that the apartment was temporarily exempt from rent stabilization while grandmother was alive because it was occupied by a family member. Tenant claimed that he should be offered a renewal lease at guidelines increases using $400 as the base rent. The DRA ruled for landlord and directed tenant to accept the lease offered by landlord.
Tenant appealed and lost. It was undisputed that tenant's occupancy in the apartment was solely as a result of his family relationship with prior landlord. He never had a written lease, and the rent he paid was substantially lower than rents paid by other non-family tenants in the building. It was never the intent of prior landlord or tenant to create a landlord-tenant relationship. It was simply an arrangement among family members that now had ended. The DRA correctly advised tenant to sign the lease offered by new landlord if he wishes to remain in the apartment.

Marra: DHCR Adm. Rev. Docket No. WG110031RT (12/16/08) [2-pg. doc.]