Pass-on Tenant Gets Preferential Rent

Landlord asked the DRA to determine rent-stabilized tenant's legal rent. Prior tenant, who was former building owner, moved into the apartment in 1977 at a preferential rent of $140 per month. He married current tenant, and she moved into the apartment with him in 1983. Later they divorced, and prior tenant moved out. Landlord claimed that current tenant should pay the full legal rent, which was $1,400 per month. The DRA ruled against landlord. Landlord appealed and lost. Current tenant was remaining family member who lived with prior tenant in the apartment for more than two years. She had pass-on rights and was entitled to continuation of the preferential rent.

AVJ Realty Corp.: DHCR Admin. Rev. Dckt. No. PL420021RO (9/4/02) [6-pg. doc.]