Leases 1, 2, 3

Legal maximum rent? Preferential rent? What if I'm a lottery tenant? 

How long will I be rent stabilized?

We can explain, but remember: right now we are all rent stabilized.

Choose your status:	1 I moved in after March 2009
	2 I’m a lottery tenant
	3 I’ve been here forever

 

1 I moved in after March 2009 . . .

Q. My lease shows two rents. What does that mean?

A. The higher rent is the maximum rent the owner can legally charge. The lower rent—the rent you’re actually paying—is called a preferential rent. The owner charges less because the legal rent is higher than what the market will bear.

 

Q. How will my rent change when I renew my lease?

A. Your preferential rent is your base rent. Any adjustment on renewal—increase, freeze, or rollback—will follow the decision of the city’s Rent Guidelines Board.

 

Q. I’m rent stabilized now. Will that change?

A. Maybe. A 2019 state law mandates that any apartment that was rent stabilized on June 14, 2019, remains rent stabilized. Owners disagree and are in court challenging the legality of rent stabilization altogether.

The Tenants Association filed its own lawsuit to keep all apartments here protected. About 4,300 of them were removed by previous owners from rent stabilization under the old law. But the owners were getting a tax break known as a J-51, at the time. That made it illegal to deregulate the apartments. In a landmark class action lawsuit, Roberts v. Tishman Speyer, the deregulation was reversed and the apartments became protected again—but only until the J-51 expired, on June 30, 2020.

Where does our current owner, Blackstone, fit into this? When Blackstone bought the property in 2015, they entered into an agreement with the city to keep no fewer than 5,000 apartments “affordable” for 20 years (affordable = longtime tenants + lottery units). They planned on the remaining 6,200+ units becoming part of the free market—with no protections and no limits on the rent.

What changed? The TA’s position is that under the 2019 state law, the so-called Roberts apartments should be permanently rent stabilized. Blackstone’s position is that the Roberts settlement allows them to deregulate. We say the state law supersedes the Roberts settlement and any other obligation to deregulate. The NY State Attorney General agrees with our interpretation. Blackstone decided to continue to treat all apartments here as rent stabilized until the lawsuit is finally settled.

So what’s the latest? We won a favorable decision in NY State Supreme Court in early 2023. Blackstone recently asked for an extension to file an appeal.

 

Q. What happens if the decision in the lawsuit ultimately goes against us?

A. If the state appellate courts rule against us, you could lose the protections of rent stabilization, and your apartment will become part of the free market. You could face market-rate rent increases when your lease expires.

 

Q. HOW CAN I HELP IN THE LEGAL FIGHT TO PRESERVE MY RENT-STABILIZED STATUS?

A. Lawsuits are expensive, but we want to protect the rent-stabilized status of all apartments here. If you’re not already a member of the Tenants Association, join us now. Your dues make it possible for us to fight for all our neighbors.

 

2 I’m a lottery tenant . . .

Q. My lease shows two rents. What does that mean?

A. The higher rent is the maximum rent the owner could legally charge if the apartment were not occupied by a lottery tenant. The lower rent—the rent you actually pay—is called a preferential rent.

 

Q. How will my rent change when I renew my lease? My renewal offer letter lists three drastically different rents.

A. Here’s what you’re seeing:

1. “Renewal Legal Rent”: the maximum legal rent the owner can charge if the apartment was not part of the lottery.
2. “Renewal Maximum Under Affordable Program”: what the owner could charge under the terms of its purchase of the property before the provisions of the 2019 law mandated that any unit that was rent stabilized on June 14, 2019, remains stabilized. This is the owner’s way of preserving its position that your apartment can be deregulated and lose lottery protections in 2035 if the TA ultimately loses its lawsuit to keep all units here protected by rent stabilization.
3. “Renewal Offer”: the rent you will be paying. Any adjustment to your preferential rent—increase, freeze, or rollback—will follow the decision of the city’s Rent Guidelines Board.

 

Q. What happens if the decision in the lawsuit ultimately goes against us?

A. If the state appellate courts rule against us, you could lose the protections of rent stabilization immediately and the protections of your lottery status in 2035.

 

Q. HOW CAN I HELP IN THE LEGAL FIGHT TO PRESERVE MY RENT-STABILIZED STATUS?

A. Lawsuits are expensive, but we want to protect the rent-stabilized status of all apartments here. If you’re not already a member of the Tenants Association, join us now. Your dues make it possible for us to fight for all our neighbors.

 

3 I’ve been here forever . . .

Your lease shows only the maximum legal rent. Your rent on renewal is adjusted according to the decision of the city’s Rent Guidelines Board. As long as the rent stabilization law is in effect, you are protected.

 

 

9/8/23/updated 9/9/23 (2x) and 9/21/23