Apartment Already Vacancy Deregulated When Tenant Moved In

Tenant complained of rent overcharge and improper vacancy deregulation of her apartment. The DRA ruled against tenant, finding that the apartment was exempt from rent stabilization and no longer subject to the DHCR's jurisdiction before tenant moved in. Tenant appealed and lost. Tenant claimed that, since prior tenant's last rent was below the high-rent deregulation threshold, her rent remained rent stabilized even if her initial rent was above the vacancy deregulation threshold. But a prior rent-stabilized tenant paid $1,875 under a renewal lease that ended on Oct. 31, 2010. When the next prior tenant moved into the apartment in late 2010, landlord was permitted to increase the rent by 16 percent, resulting in a legal rent of $2,175. This amount would have exceeded the deregulation threshold then in effect. So even though landlord charged the last prior tenant a lesser amount, the apartment was deregulated under Rent Stabilization Code Sections 2550.11(r)(4) and (6) when the complaining tenant moved in.

Mitchell: DHCR Adm. Rev. Docket No. FQ410032RT (3/1/81) [3-pg. doc.]