Building with Four Apartments Not Subject to Rent Stabilization

LVT Number: #28597

Landlord asked the DHCR for a ruling that its building was exempt from rent stabilization because it contained fewer than six apartments. The DRA ruled against landlord, finding that a prior DHCR ruling found a rent overcharge for a rent-stabilized tenant in the building, DOB and HPD records indicated that the building was built before Jan. 1, 1974, and contained six apartments, and in 1998 a prior owner converted two first-floor apartments into stores.

Landlord asked the DHCR for a ruling that its building was exempt from rent stabilization because it contained fewer than six apartments. The DRA ruled against landlord, finding that a prior DHCR ruling found a rent overcharge for a rent-stabilized tenant in the building, DOB and HPD records indicated that the building was built before Jan. 1, 1974, and contained six apartments, and in 1998 a prior owner converted two first-floor apartments into stores.

Landlord appealed and won. The 1992 DHCR order finding rent overcharge, as well as prior owner's registration of apartments with the DHCR in 1997 and 1998, weren't conclusive as to the building's status. The DOB and HPD records that the DRA relied on stated that the building contained four residential units, not six. And DOB records concerning alteration of two first-floor residential units into stores were from 1937, not 1998. Landlord showed that the building was constructed in the early 1900s containing two ground-floor commercial units and four residential units. No structural alterations took place after that. DHCR rent control records contained no contrary information. Although HPD I-cards indicated that the commercial units contained "living space" or "rooms," such units would be covered by the 1940s rent control law but didn't qualify as rent-stabilized because these living spaces weren't created as a residence, home, dwelling unit, or apartment with the intention of renting them out as independent dwelling units. 

Vutera: DHCR Adm. Rev. Docket No. FP210021RO (6/8/18) [6-pg. doc.]

Downloads

FP210021RO.pdf2.89 MB