421-a 2.2 Percent Adjustment Not Counted in Determining High-Rent Threshold

Landlord applied for high-rent/high-income deregulation of tenant's apartment in 1995. The DRA ruled against landlord, and landlord appealed, claiming that the legal, regulated rent for the apartment was over $2,000 per month. The DHCR again ruled against landlord. Tenant's apartment was in a 421-a building, and so a 2.2 percent rent adjustment was added to tenant's rent every year. Under the Rent Stabilization Code and DHCR policy, this annual increase didn't become part of the base rent for any year after November 1982. So this portion of tenant's rent couldn't be included in calculating the legal rent for the purpose of high-rent deregulation. The annual 2.2 percent rent adjustments for tenant's apartment total approximately $150. When this amount was subtracted from tenant's rent, the rent was under $2,000.

72nd St. Assocs.: DHCR Adm. Rev. Dckt. No. LI410049RO (5/5/99) [4-pg. doc.]