Combined Rent-Controlled and Rent-Stabilized Apartments

Tenant filed a fair market rent appeal for apartment 7D. Tenant was rent-controlled tenant of apartment 7C since 1969. Landlord claimed that tenant rented apartment 7D in 1980 as landlord's managing agent and illegally combined apartments 7C and 7D. Tenant claimed that he combined the apartments with landlord's consent. An inspection confirmed that the apartments were combined. The DRA ruled that apartment 7C remained rent controlled and that apartment 7D was rent stabilized and the rent charged was subject to a fair market rent appeal. The DRA reduced tenant's rent for apartment 7D. Landlord appealed and lost. Landlord never brought a court action against tenant for the apartment renovations, so it seemingly agreed to them. Since landlord didn't combine the apartments, it couldn't claim that the unit was a newly created apartment for which landlord could set a first rent. The DRA properly categorized apartment 7C as rent controlled and apartment 7D as rent stabilized and subject to a fair market rent appeal.

430 Realty Co.: DHCR Admin. Rev. Dckt. No. NL420011RO (8/25/01) [16-pg. doc.]