Apartment Temporarily Exempt on Base Date

April 30, 2003

LVT Number: 16539

Tenant moved into rent-stabilized apartment in November 1994 and filed a rent overcharge complaint with the DHCR in July 1997. Between August 1989 and August 1993, the apartment was leased to a school as a student residence and was temporarily exempt from rent stabilization. The DHCR ruled against tenant. Since the apartment was exempt on the base date four years before the filing of tenant's complaint, landlord was entitled to charge tenant a first rent. Tenant appealed, claiming that the DHCR's ruling was arbitrary and unreasonable.

Tenant moved into rent-stabilized apartment in November 1994 and filed a rent overcharge complaint with the DHCR in July 1997. Between August 1989 and August 1993, the apartment was leased to a school as a student residence and was temporarily exempt from rent stabilization. The DHCR ruled against tenant. Since the apartment was exempt on the base date four years before the filing of tenant's complaint, landlord was entitled to charge tenant a first rent. Tenant appealed, claiming that the DHCR's ruling was arbitrary and unreasonable. The court ruled for tenant and sent the case back to DHCR for consideration of the rent history going back to 1987. The DHCR appealed and won. The DHCR's interpretation of the four-year rule under the Rent Stabilization Law was reasonable. The court was wrong to substitute its own opinion and revoke the DHCR's decision.

Hatanaka v. Lynch: NYLJ, 4/7/03, p. 18, col. 4 (App. Div. 1 Dept.; Buckley, PJ, Nardelli, Rosenberger, Marlow, JJ)

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