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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

Liggett v. Lew Realty LLC, 42 N.Y.3d 415 (2024)

Citation
Liggett v. Lew Realty LLC, 42 N.Y.3d 415 (2024)
Parent Document
Liggett v. Lew Realty LLC, 42 N.Y.3d 415 (2024)
Jurisdiction
New York (state)
Effective Date
2024-06-20

Full Text

1,273 chars
The stipulation between McKinney and the landlord provided that McKinney "agrees to accept and the landlord agrees to offer a rent stabilized lease" in McKinney's name at a rate of "$650 per month." It also stated that "$1,650 per month is a fair rent for [the] apartment being removed from Rent Control," a proviso apparently intended to set the initial legal regulated{**42 NY3d at 419} rent under the rent stabilization laws (RSL). The stipulation further provided that "[f]or as long as Ed McKinney is the tenant, his rent shall be $650 per month plus allowable rental increases." The effect of that provision, which neither party disputes, was to ensure that McKinney would pay a preferential rate of $650, with subsequent increases tied to this number for the duration of his tenancy. McKinney also agreed "not to challenge the rent," thereby waiving his right to challenge the amount of the initial rent through a fair market rent appeal proceeding. Lew Realty filed the lease with DHCR, registered $1,650 as the "legal regulated rent" and $650 as the "actual rent paid," and mailed McKinney notice of his right to file a FMRA as required by statute, notwithstanding that McKinney had already agreed not to avail himself of the process (see 9 NYCRR 2522.3 [a]).[FN1]