Apartment Was Vacancy Deregulated Before Tenant Moved In

Tenant complained to the DHCR in 2020, claiming rent overcharge. The DRA ruled against tenant, finding that her apartment was no longer rent stabilized. Tenant appealed and lost. The base rent date for tenant's complaint was June 14, 2015. In 2010, the apartment rent exceeded the $2,000 high-rent vacancy deregulation threshold and became permanently exempt from rent stabilization. So, the base date rent was exempt from rent stabilization and the DHCR had no jurisdiction over the apartment.

Tenant appealed and lost. Landlord had submitted the renewal lease of a prior rent-stabilized tenant whose legal regulated rent was $1,760 in March 2009, with a preferential rent of $1,600. The next lease was a vacancy lease for a former tenant commencing June 1, 2010. When the applicable vacancy increase of 17 percent was added, the new legal rent was $2,059.9, which exceeded the deregulation threshold then in effect. So the apartment was deregulated as a matter of law. Tenant didn't set forth any colorable claim of a fraudulent scheme to deregulate the apartment. Landlord also wasn't required to produce claimed IAI records from 2008 that may have increased the rent but didn't deregulate the apartment. There also were no inconsistencies in the apartment's rent registration records. And there were no inconsistencies in the leases produced. 

Bajo: DHCR Adm. Rev. Docket No. MR210009RT (9/10/24)[4-pg. document]