SCRIE Benefit Is Deducted from Legal Regulated Rent, Not Preferential Rent
LVT Number: #30368
Landlord sued to evict rent-stabilized tenant for nonpayment of rent, claiming tenant owed $5,106. Tenant asked the court to dismiss the case, claiming that landlord failed to properly credit his Senior Citizen Rent Increase Exemption (SCRIE) credit and that therefore he didn't owe any rent. The court ruled against tenant. Tenant had received SCRIE benefits since 2012. Tenant's current legal rent was $1,241, and tenant received a preferential rent of $856. According to SCRIE documents, tenant's rent was frozen at $1,077. Tenant argued that landlord should apply the SCRIE credit to his preferential rent rather than to the legal rent. But the course of conduct between the parties showed no agreement to apply the SCRIE exemption to tenant's preferential rent. Tenant also failed to show any law or SCRIE program requirement indicating that landlord must apply the SCRIE credit to a preferential rent. Real Property Tax Law Section 467-b(3)(c) provides that a SCRIE exemption should be deducted from the chargeable legal regulated rent. The case was adjourned for trial or settlement.
One Two Four Madison Associates, LLC v. Velasquez: 64 Misc.3d 1225(A), 2019 NY Slip Op 51288(U) (Civ. Ct. NY; 8/6/19; James, J)