Apartment Was Properly Deregulated Under Rent Act of 2011

Landlord sued to evict tenant. Tenant asked the housing court to dismiss the case, claiming that the apartment had been improperly deregulated. The housing court ruled for tenant. Landlord appealed, and the Appellate Term reinstated landlord's petition, finding that the lower court had incorrectly applied the law.

Tenant then appealed to a higher appeals court and lost. In this case, tenant's lease commenced before the effective date of the Rent Act of 2015 and the apartment had already been deregulated under the now-repealed high-rent vacancy deregulation provisions of the Rent Stabilization Law (RSL). Under the Rent Act of 2011, the RSL expressly allowed landlords to apply the most recent applicable guidelines increases and any other increases authorized by law before calculating the deregulation threshold. So, landlord properly deregulated the apartment before the Rent Act of 2015 was enacted. The apartment didn't become reregulated. Landlord was entitled to apply the relevant vacancy and guidelines increase permitted under the Rent Act of 2011 before calculating whether the rent for the apartment reached the high-rent vacancy deregulation of $2,500 then in effect. 

191 Realty Assoc., LP v. Tejeda: App. No. 13654, Case No. 2020-01891, 2021 NY Slip Op 02445 (App. Div. 1 Dept.; 4/22/21; Acosta, Renwick, Singh, Moulton, JJ)