Apartment Improperly Deregulated in 2002 Was Rent Stabilized

Tenant asked the DHCR for a ruling on the rent-regulated status of her apartment. Tenant claimed that landlord had fraudulently deregulated the apartment. Landlord claimed that the apartment had been vacancy deregulated in 2002.

The DRA ruled for tenant and found that the apartment was subject to rent stabilization.  The DRA also found that landlord failed to prove claimed costs for individual apartment improvements (IAIs).

Landlord appealed and lost. Landlord objected to a lookback beyond four years. But the DHCR can consider events beyond the four-year lookback period if done to determine whether an apartment is regulated. A prior rent-stabilized tenant paid $385 per month in 2000. In 2002, the next tenant paid $2,100 per month. IAI documentation submitted by landlord didn't include an itemized breakdown of the work performed. So the DRA reasonably disallowed the claimed IAI cost in calculation of the legal rent in 2002. 

536 E. 5th St. Equities: DHCR Adm. Rev. Docket No. HR410018RO (7/9/20) [5-pg. doc.]