Apartment Deregulated Through High-Rent Vacancy

Tenant complained of a rent overcharge. The DRA dismissed the complaint. When the apartment became vacant in 2002, landlord made improvements. As a result, the next legal vacancy rent was over $2,000 per month and the apartment was deregulated. Tenant appealed, claiming that when she and her former husband moved into the apartment in 2005, landlord gave them a rent-stabilized lease and registered the apartment as rent stabilized. She didn't claim there was any fraud involved. Landlord showed that it gave tenants a fair market vacancy lease with a preferential rent of $1,300 per month based on the husband's business relationship with landlord. Landlord later gave tenants a rent-stabilized renewal lease by mistake at $1,500 per month, followed by fair market renewals to tenant at $2,500 and $2,700 per month. Landlord also had registered the apartment as exempt due to high- rent vacancy in 2003. Later registration statements indicating the apartment was rent stabilized were in error. The apartment was legally deregulated in 2002.

Pandullo: DHCR Adm. Rev. Docket No. YJ410012RT (8/23/11) [3-pg. doc.]