Judge Jack Stoller

Landlord commenced a holdover proceeding against tenant Hussein seeking possession of the premises arguing she did not renew her lease. Tenant resided in the building for many years without a lease, paying $650 monthly rent. Landlord offered Hussein a lease with a monthly rent of $1,250, which she did not execute, objecting to the rent as an excessive increase. The court noted landlord’s cause of action sounded in contract, but stated unconscionable contractual provisions were unenforceable. Landlord argued it was permitted to propose a rent increase as it was not subject to Rent Stabilization laws. The court agreed, but stated the premises was not like other unregulated tenancies in which a landlord may start an eviction proceeding upon no cause other than the expiration of the tenancy. It noted landlord stated a cause other than the expiration of the lease—Hussein’s failure to execute a renewal lease offered to her. Yet, the court stated Hussein refused to renew the lease as it would have immediately increased her rent by 92 percent. As no evidence was introduced at trial regarding the reasonableness of the rent increase, the court dismissed the petition.