Apartment Was Vacancy Deregulated After Rent-Controlled Tenant Moved Out

Tenant complained to the DHCR in 2018, claiming rent overcharge and improper apartment deregulation. The DRA ruled against tenant, finding that the unit had been lawfully deregulated in 2010. Tenant had moved into the apartment on Sept. 1, 2010, at a legal regulated rent (LRR) of $2,100. Under RSC Section 2520.1(r)(4), in effect at the time, an apartment with a LRR exceeding $2,000 per month on or after June 19, 1997, was no longer subject to rent stabilization. 

Tenant appealed and lost. Tenant claimed that the DRA failed to consider evidence of fraud by the landlord. The DHCR disagreed. Tenant was the first apartment tenant after the prior rent-controlled tenant moved out. Tenant was entitled to challenge the first decontrolled rent by filing a fair market rent appeal (FMRA) either within 90 days after service of an RR-1 registration form on the first decontrolled tenant or, if the form wasn't filed, within four years of moving into the apartment. Tenant's initial lease also stated in large, bold type on page 1 that "THIS APARTMENT IS NOT SUBJECT TO RENT REGULATION." So tenant can't persuasively argue that there was some fraud perpetrated by the landlord. And while landlord mistakenly registered the apartment as rent stabilized in 2010 when tenant moved in, the apartment was vacancy deregulated by operation of law in 2010, and stabilization status couldn't be imposed. 

Choi: DHCR Adm. Rev. Docket No. LM410004RT (6/15/23)[4-pg. document]