Apartment Improperly Deregulated Under J-51

Unregulated tenant complained of rent overcharge, improper deregulation, and fraud. Tenant's monthly rent was $2,700, and tenant questioned alleged individual apartment improvements (IAIs) made to the apartment. The DRA ruled against tenant, finding that the base date rent was $3,098, that there was no overcharge, and that there were no factors warranting pre-base date review based on fraud.

Tenant appealed, and the DHCR reopened the case although the DHCR still found no indications of fraud. In this case, landlord didn't try to hide an illegal rent by filing amended rent registrations. Prior landlord had improperly deregulated the apartment in 2007 while the building received J-51 benefits but in accordance with DHCR policy at the time. But landlord had resumed proper annual rent registration since 2010. Landlord also gave tenant a rent-stabilized lease, renewal leases, and DHCR riders. But, because prior landlord mistakenly deregulated the apartment in 2007, the apartment remained rent stabilized and the base date rent could be challenged based on a court decision in 72A v. Lucas. The case was sent back to the DRA to determine the base date rent.

Solis: DHCR Adm. Rev. Docket No. FP410021RT (1/31/18) [4-pg. doc.]