Co-op Subtenant Not Subject to Rent Stabilization

January 23, 2015

LVT Number: #25923

Tenant complained of rent overcharge. The DRA ruled against tenant, who appealed and lost. The building was owned by a cooperative corporation, and the apartment was owned by a shareholder-proprietary lessee. Tenant moved into the apartment after the 1996 co-op conversion and was the subtenant of the proprietary lessee. So tenant wasn't subject to rent stabilization. Tenant incorrectly argued that the building remained subject to rent stabilization when the deed was transferred to the cooperative HDFC in 1996.

Tenant complained of rent overcharge. The DRA ruled against tenant, who appealed and lost. The building was owned by a cooperative corporation, and the apartment was owned by a shareholder-proprietary lessee. Tenant moved into the apartment after the 1996 co-op conversion and was the subtenant of the proprietary lessee. So tenant wasn't subject to rent stabilization. Tenant incorrectly argued that the building remained subject to rent stabilization when the deed was transferred to the cooperative HDFC in 1996. And a 2010 opinion letter that tenant obtained from the DHCR stating that the apartment "seems" to be subject to rent stabilization wasn't a formal determination and had no bearing on the DRA's ruling.

Berg: DHCR Adm. Rev. Docket No. YF410059RT (11/7/14) [4-pg. doc.]

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