Apartment Was Vacancy-Deregulated in 2006

White Plains tenants complained to the DHCR of rent overcharge. The DRA ruled against tenants and dismissed their complaint, finding that the apartment had been vacancy-deregulated in 2006 before tenants moved in. The DRA found that the apartment had been rent controlled, the rent-controlled tenant moved out in 2005, landlord then performed individual apartment improvements (IAIs) and applied rent guideline increases so that the legal rent exceeded the $2,000 vacancy deregulation threshold then in effect upon vacancy in 2006. By the time the complaining tenants moved into the unit in 2015, the apartment was no longer under the DHCR's jurisdiction.

Tenants appealed and lost. They claimed that landlord never filed a Notice of Deregulation with the DHCR in 2005, and didn't otherwise take the proper procedural steps to deregulate the apartment. They also argued that the IAIs weren't recorded or approved by the DHCR. 

The DHCR ruled against tenants. The failure to file any notice wasn't a ground to invalidate an otherwise valid deregulation, and the deregulation here was valid. At the time performed, there was no legal requirement to record or get approval for IAIs. The apartment became deregulated by operation of law, and no tenant needed to be charged or pay such legal rent, and the legal rent didn't have to be in excess of such threshold during any tenancy. And tenants didn't challenge the accuracy of the DRA's rent calculations. 

Brill: DHCR Adm. Rev. Docket No. LX910031RT (2/15/24)[3-pg. document]