Building with Illegal SRO Units Contained at Least Six Housing Accommodations

Tenant asked the DHCR for a ruling on whether his apartment was subject to rent stabilization, claiming the pre-war building at one point contained six apartments. Landlord claimed that the building contained fewer than six apartments and that, because tenant had moved out, he didn't have standing to seek a ruling from the DHCR on the building's rent-regulatory status.

The DRA ruled for tenant. The building was built before 1974, and DOB records showed that a full vacate order was issued in March 2018 due to extensive fire, water, and smoke damage. DOB records also stated that the building contained illegal SRO units on the first floor. This brought the total number of dwelling units at the building to at least six. Also, tenant's letter stating that he had moved out was sent after the DOB vacate order and referred only to the belongings left in the apartment following the vacate order.

Landlord appealed and lost. The prior landlord had stated in a court-ordered settlement stipulation that tenant's apartment was "de facto rent stabilized." DOB records also indicated that a first-floor storefront had been split in half, creating four illegal SROs, bringing the total number of dwelling units up to at least six. The complaining tenant had left the building in accordance with the DOB vacate order and hadn't abandoned the apartment. Since the building contained at least six dwelling units, tenant was subject to rent stabilization.

4415 3 Ave LLC: DHCR Adm. Rev. Docket No. HV610008RO (1/13/23)[3-pg. document]