Apartment Was Lawfully Deregulated After J-51 Tax Benefits Expired

Tenant complained to the DHCR of rent overcharge and improper apartment deregulation in February 2023. Tenant had moved into the unit in April 2021 at an initial rent of $3,850 per month. The DRA ruled against tenant, finding that the prior tenant's monthly rent of $2,778 for the lease term between Aug. 1, 2015, and July 31, 2017, exceeded the deregulation threshold prior to tenant's occupancy. The apartment also became vacant after the building's J-51 tax benefits expired on July 31, 2017. So, the apartment was properly deregulated in 2017. Since tenant didn't question individual apartment improvement (IAI) rent increases from 2015 until he filed his PAR, the DHCR couldn't consider those claims at this point. The IAI claims and new claims involving prior rent registrations also concerned rents collected before the four-year base date applicable to tenant's complaint. 

Gartenberg: DHCR Adm. Rev. Docket No. LQ210006RT (6/27/23)[2-pg. document]