Apartment Wasn’t Properly Deregulated

Landlord sued to evict month-to-month tenant, claiming that the apartment was deregulated. Landlord said that the maximum legal rent had reached over $2,000 in 2006 when the apartment became vacant. Tenant claimed that DHCR records showed that the maximum legal rent registered in 1999 was $1,080 and the monthly rent paid was $650. In 2006, the registered rent was over $2,000, but the rent paid was $790. Tenant argued that under a new formula added by Rent Stabilization Code Section 2526.1(a)(3)(iii) in 2014, the 1998 maximum legal rent would have been $507. So, taking the highest of the three possible maximum legal rents, and adding the maximum allowable increases through 2008, the maximum legal rent in 2008 was $1,386. And, since the rent wasn’t registered from 2009 through 2014, no further rent increase was allowed, and the maximum legal rent never reached the $2,000 deregulation threshold. The court agreed with tenant and dismissed the case. 

Jacob Marion LLC v. Doe: Index No. 86889/14, NYLJ No. 1202732550529 (Civ. Ct. Kings; 6/30/15; Marton, J)