Building Not Exempt Based on Federal ‘Preemption'

January 1, 1997

LVT Number: 11179

Tenant complained of a rent overcharge. The DRA ruled for tenant based on landlord's default. Landlord appealed. Under rent stabilization, apartments ``owned or operated'' by the government are exempt from stabilization. Landlord claimed that the building was exempt under a HUD "preemption.'' The DHCR ruled against landlord. HUD didn't own or operate the building. The government agency merely insured a defaulted loan while the building was being put into receivership. In addition, landlord only applied for federal "preemption.'' There was no proof that it was ever granted.

Tenant complained of a rent overcharge. The DRA ruled for tenant based on landlord's default. Landlord appealed. Under rent stabilization, apartments ``owned or operated'' by the government are exempt from stabilization. Landlord claimed that the building was exempt under a HUD "preemption.'' The DHCR ruled against landlord. HUD didn't own or operate the building. The government agency merely insured a defaulted loan while the building was being put into receivership. In addition, landlord only applied for federal "preemption.'' There was no proof that it was ever granted.

Zuckerman: DHCR Adm. Rev. Dckt. No. ARL13177K (8/23/96) [3-page document]

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