Building Converted from 6 to 5 Apartments After 1974 Remained Rent Stabilized

Tenant claimed that he was rent stabilized and asked the DHCR to make a ruling on the building's rent-regulatory status. The DRA found that the building was rent stabilized.

Landlord appealed and lost. Landlord pointed out that a prior, unrelated DHCR ruling had determined that the building contained fewer than six apartments and therefore wasn't rent stabilized. But, as tenant pointed out, that ruling was based on incorrect information and determined that "there was no evidence on file indicating that the subject building contained six apartments any time after July 2, 1974." But, in this case, tenant showed that the building did contain six apartments between 1974 and 2004, when landlord obtained permission from DOB to convert the building from a six-family to a five-family building. DOB signed off on this alteration on Jan. 20, 2005. The DHCR's prior decision wasn't based on this evidence and therefore had no preclusive effect against the new ruling here that the building was rent stabilized because of the number of apartments in the building on the regulatory base date. The prior ruling was the result of either illegality, irregularity in vital matters, or fraud, and therefore the DRA properly ruled her that the building was rent stabilized.

610 Manhattan LLC: DHCR Adm. Rev. Docket No. AU210028RO (7/18/24)[5-pg. document]