Tenants Win Major Victory over Rent Guidelines Board Rent Increases

Tenants with rents under $1,000 may soon see a significant reduction in their base rent as well as a credit for past overpayments. 

In Casado v. Markus, (NY County Index No.: 402267/2008) Justice Emily Jane Goodman of the New York State Supreme Court found that the New York City Rent Guidelines Board overreached its authority when it imposed a minimum rent increase (a/k/a a “poor tax”) of $45 per month or 4.5% (whichever is greater) for rent stabilized apartments which experienced one year lease renewals after October 1, 2008, and $85 or 8.5% for tenants choosing two year leases. (For apartments where the landlord does not provide heat, the respective figures are $40 or 4% and $80 or 8%, whichever is greater.)       

Justice Goodman found that the minimum dollar amounts effectively established a separate class of apartments (those renting under $1,000.00) and that the Rent Guidelines Board lacked authority to do this — noting that the City Council has such authority and had already established the only classes that are permissible.  

While an appeal is almost inevitable, Justice Goodman’s ruling appears to be well anchored in the language of the Rent Stabilization Law and established precedent.   This is welcome news for tenants with lower rents — who also tend to be among the lower income tenants in the City.  

Congratulations to Ed Josephson and South Brooklyn Legal Services for a major tenant victory.