Apartment Previously Occupied by Nonprimary Resident at Rent of $2,000 or More

For over 10 years, landlord rented an apartment to tenant as a nonprimary residence. The monthly rent was $4,500 when tenant moved out. The prior rent-stabilized rent was $1,200. Since the most recent rent was over $2,000, landlord asked the DHCR whether the apartment was now deregulated under the high-rent vacancy provisions of the rent stabilization law. In an opinion letter, the DHCR said yes. It didn't matter how much rent the nonprimary resident paid. Since tenant's nonprimary residence was determined by a court and the period of temporary exemption from rent stabilization was four years or more, the first rent thereafter negotiated between landlord and the next tenant would be recognized by the DHCR as the legal rent. If the first rent was $2,000 or more, the apartment would be considered deregulated under high-rent vacancy deregulation. Since the exempt nonprimary resident's rent was in effect for over four years, the DHCR would be barred from examining any prior rent history for the apartment if the next tenant complained of a rent overcharge.

DHCR Opin. Ltr. by Charles Goldstein (10/13/98) [3-pg. doc.]