Apartment Was Vacancy-Deregulated After Gut Renovation

Tenants complained to the DHCR of rent overcharge in 2018. The DRA ruled against tenants, who appealed and lost. The DHCR found that the DRA had properly determined that the apartment was properly deregulated more than four years before tenant filed their complaint. Landlord submitted leases in effect prior to and after it did a gut renovation of the unit. A notice of deregulation was included in the lease following the individual apartment improvements (IAIs). Landlord also submitted DOB paperwork, permits, and a Letter of Completion, as well as proof of payments for the renovation work. Tenants claimed that the deregulation was fraudulent. But the DHCR found no indication of fraud. Landlord proved the rent was properly deregulated. The first rent following vacancy and IAIs was $2,200, which was above the deregulation threshold at the time the work was done.

Solarz & Bordonaro: DHCR Adm. Rev. Docket No. KS410015RT (11/30/22)[5-pg. document]