Apartment Was Properly Deregulated in 2009 Due to Base-Date Vacancy

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant in 2018 and ordered landlord to refund $6,150, including triple damages. Landlord appealed, and the DHCR sent the case back to the DRA in early 2020, for further consideration based on amendments to the RSL enacted in 2019 under HSTPA. Later in 2020, the DHCR advised the parties that HSTPA amendments were inapplicable under the court ruling in Regina Metropolitan v. DHCR and that the DHCR instead would consider the merits of landlord's PAR. The DHCR ruled for landlord. RSC Section 2526.1 as it existed prior to Jan. 8, 2014, applied to this case. Since the apartment was vacant on the base rent date, the legal rent was the rent agreed to by landlord and the first rent-stabilized tenant who moved in after this vacancy. And under RSC Section 2520.11, as was in effect at that time, the apartment was deregulated since the first rent after the base date vacancy exceeded the deregulation threshold. The prior tenant, who was the first tenant after the base date vacancy, paid over $2,000 per month and her lease included a deregulation rider. So the subsequent, complaining tenant also was deregulated, even through she paid less than $2,000 per month in rent. Landlord also registered the apartment as vacancy-deregulated in 2009. So the apartment was properly deregulated and there was no overcharge.

192 BSD LLC: DHCR Adm. Rev. Docket No. IS210034RK (11/6/20) [5-pg. doc.]