Apartment Deregulated for Fair Market Rent Over $2,000

After rent-controlled tenant moved out, landlord rented the apartment to tenant for $2,695 per month. Tenant filed a fair market rent appeal, claiming that his first rent was more than the fair market rent. The DRA ruled against tenant. Tenant appealed, claiming that the DRA used the wrong MBR to calculate the fair market rent. The DHCR ruled against tenant. The 2004 MBR for the apartment was $653.04. The DRA had correctly increased this by 50 percent, the Special Guideline increase in effect under Rent Guidelines Board Order No. 36. The DRA then averaged this amount with $2,300, the rent for an unregulated comparable apartment in the building. Then the DRA added $425 for apartment improvements costing $17,000. The resulting fair market rent was more than $2,000. Therefore, tenant's apartment was exempt from rent stabilization.

Kaskey: DHCR Adm. Rev. Docket No. UJ410037RT (1/9/07) [4-pg. doc.]