CW Capital Changes its Position on When the Preferential Rent can be Raised
The following information is from the attorneys for the Roberts class. Please note that the ST/PCV-TA is not a party nor participant in the Roberts suit, but forwards information from Roberts attorneys to the community as it made available to us.
“Two notices from the Roberts attorneys that were posted on this site, one on April 6, 2011 and one on May 14, 2012, discussed an issue involving the “preferential rents” reflected in the Owner’s leases with Roberts tenants. The issue concerned whether, as a result of certain events that may occur in the lawsuit, the Owner would be able to raise the “preferential rent” the tenant was paying (sometimes referred to as the “lower rent to be charged”) to the higher “legal rent” during the term of a lease. The Roberts attorneys stated that the Owner had stated that it would charge the lower rent for the duration of the lease term and seek up to the “legal” rent only upon renewal. Based upon current information, the Roberts attorneys are now updating their statement to state that the Owner is no longer so stating. All tenants should keep that in mind for their current lease as well as when signing leases for future tenancies.”