New York, NY – New York State Assemblymember Linda B. Rosenthal (D/WF, Manhattan) today lauded a State Supreme Court decision striking down the city’s Rent Guidelines Board’s unequal system of levying higher charges on leases of long-term rent-stabilized tenants paying less than $1000 per month in rent.

“Over the years, landlords have attempted many different ways to extract more rent from tenants; this time they went too far by inventing an unequal and illegal ruse that was rightfully struck down by the Court,” said Assemblymember Rosenthal. “The Rent Guidelines Board, according to this decision, had no right to unilaterally create another class of tenants,” she said, urging that the City accept the decision. City attorneys have said they will appeal it and will seek to have the decision not go into effect until after a ruling in the appeal.

State Supreme Court Justice Emily Jane Goodman ruled January 20, 2010 that the Rent Guidelines Board unfairly created two categories of tenants. Specifically, the board had ordered rent-stabilized tenants paying less than $1000 per month who had lived in their apartments for six or more years to consistently pay the higher of two options. Under this practice, a tenant signing a one-year lease renewal could be given either a 4.5% or $45 rent increase, and a tenant signing a two-year lease renewal could be given either an 8.5% or $85 rent increase, whichever was higher.

The end result of this tiered system has been that long-term rent-regulated tenants have faced annual rent increases that are significantly higher than those of short-term ones.

“This policy is one part of a system that too often inflicts hardship on families, neighbors and long-time members of our community,” said Assemblymember Rosenthal. “It penalizes tenants for staying put, which flies in the face of common sense and good city planning and endures for no one’s good but landlords. When a tenant leaves a rent-stabilized apartment, a landlord can raise rents by a minimum of 20%, an inappropriate incentive that is the root of much of the harassment tenants face. This policy to consistently extract the maximum amount of money from rent-stabilized tenants is just another dimension of the pressure constantly applied to my constituents.” She also applauded the Legal Aid Society for bringing and winning the case.

Assemblymember Rosenthal said, “I am heartened by this fair, prudent and courageous ruling. In an era, where the Rent Guidelines Board is stacked with anti-tenant appointees, it is reassuring to see the occasional check on the power they wield with rigid ideology. Goodman’s ruling should serve as a reminder that housing legislation I am fighting for, like the repeal of vacancy decontrol, is within our grasp if we keep up our efforts.”