An owner cannot use or enforce a clause in a rent- 1. On July 1, 2019, when Ms. Sanchez’s one year
stabilized lease that provides that the owner may renewal lease begins, the legal regulated
end a preferential or a discounted rent where the rent will increase by 1.5% From $1,200 to
tenant fails to pay the preferential or discounted $1,218 due to the annual rent guidelines
rent on time or by a certain day of the month. board increase. However, the preferential
rent will also increase by 1.5% to $1,015. Ms.
An owner cannot use or enforce any other Sanchez will pay the $1,015 preferential
lease clause that conditions the payment of a rent.
discounted rent on the performance of an act by
A PUBLICATION OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL OFFICE OF RENT ADMINISTRATION FS-40 (05/2024)
FACT SHEET #40: PREFERENTIAL RENTS PAGE 3 OF 3
2. Although the renewal lease was signed
before the effective date of the HSTPA, it did
not become effective until July 1, 2019. As
the prior lease in effect on June 14, 2019 had
a preferential rent, pursuant to the HSTPA
of 2019, the tenant’s renewal lease must be
based on that preferential rent.
SOURCES
Housing Stability & Tenant Protection Act (HSTPA) of 2019