Apartment Was Deregulated More Than Four Years Before Tenant Claimed Overcharge

Landlord sued to evict unregulated tenant for nonpayment of rent. Tenant claimed that he was rent stabilized and had been overcharged. He asked the court to dismiss the case. The court ruled against tenant. The apartment had been registered as permanently exempt due to high-rent vacancy in 2003. Tenant moved into the apartment in 2011 and was initially charged $1,700 per month. Tenant argued, based on the appeals court's decision in Altman v. 285 W. Fourth, LLC, that, since prior tenant's rent was less than $2,000 per month, his first rent couldn't be deregulated. Landlord pointed out that some other appeals courts had disagreed with the Altman decision.

The court ruled against tenant. In an April 2017 case, 18 St. Marks Place Trident LLC v. DHCR, the same appeals court that decided Altman now ruled that an apartment was deregulated after vacancy and apartment improvement increases resulted in a legal regulated rent over the $2,000 deregulation threshold. And a rent overcharge claim generally is subject to a four-year statute of limitations. In this case, the apartment was registered as exempt well before the four-year look-back period and there was no proof that landlord engaged in a fraudulent scheme to remove the unit from rent stabilization. The case was adjourned for trial or settlement.

Oren Apartments, LLC v. Torres: Index No. L&T67038/16, NYLJ No. 1202785511994 (Civ. Ct. Queens; 4/24/17; Nembhard, J)