Apartment Properly Became Exempt Under Vacancy Deregulation

Tenant complained to the DHCR of rent overcharge and improper deregulation of his apartment. The DRA ruled against tenant, who appealed and lost. DHCR records showed that, prior to 1990, the apartment was rent controlled. Landlord submitted proof that, in 1990, the building super moved into the apartment, didn't pay rent, and remained there until 2009. Landlord submitted rent history records showing that it charged the next tenant $1,900 per month in 2009 and that, upon vacancy in 2010, the apartment became vacancy deregulated. Since the 2009 was the first rent charged following rent control, it became the legal regulated rent under fair market rent appeal rules.

The super's occupancy had no bearing on the setting of the first rent and didn't require the owner to bridge the gap between the last rent-controlled rent and first rent-stabilized rent. The fact that landlord didn't register the apartment between 1990 and 2009 when the super lived there didn't subject landlord to a penalty, because no rent would have been registered in those years anyway, and landlord otherwise proved that the super lived there. The failure to register the apartment as rent stabilized in 2009 also didn't determine anything since there were rent history records that otherwise proved the rent. And the failure to file an exit registration in 2010 didn't result in a penalty. None of landlord's actions indicated fraud. 

O'Gorman: DHCR Adm. Rev. Docket No. HP410019RT (9/9/19) [4-pg. doc.]