Conversion from Six to Five Apartments Didn't Deregulate Building

Tenant asked the DHCR to rule on whether his apartment was rent stabilized. Tenant claimed that the building originally had six apartments, but later one of the units was converted to a duplex apartment. Landlord claimed that tenant was unregulated and that his initial rent in 2004 was $1,350 per month. Tenant's rent was increased to $1,500 in 2014. DOB issued a Certificate of Occupancy (C of O) for the building in November 1994, listing five apartments. But HPD I-card records showed that the building originally had six apartments in 1929. 

The DRA ruled for tenant, finding that the 1994 C of O resulted from an alteration that reduced the number of apartments in the building after the rent stabilization base date. Landlord appealed and lost. Landlord claimed that tenant waived any right to challenge the apartment's regulatory status since he waited 12 years before complaining. And landlord argued that the alteration application leading to the C of O issuance in 1994 was actually filed in 1970. The DHCR found that there was no "laches" because tenants generally are not expected to understand their rights under the rent laws and Rent Stabilization Code Section 2520.13 states that tenants can't waive their rights under the law. Here, tenant was charged no rent increase for 10 years and would likely have believed he was rent regulated. In addition, available proof showed that the building was completed prior to Feb. 1, 1947, and contained six apartments on the rent-stabilization base date. And there was no proof that the conversion from six to five units took place before 1969. 

21-78 19th Street LLC: DHCR Adm. Rev. Docket No EW110008RO (5/3/17) [4-pg. doc.]