Deemed Leases Apply While Apartment Was Temporarily Exempt from Rent Stabilization

Tenant complained of a rent overcharge. The DRA ruled for tenant, and landlord appealed. Landlord pointed out that the apartment had been occupied for commercial use for some time before tenant moved in. Landlord questioned the formula the DRA used to calculate the rent increases during this period. The DHCR ruled against landlord. The DRA's calculation of deemed increases for the exempt period was correct. Landlord's calculations for that period would give it the maximum possible yearly increases. The DRA's calculations instead gave landlord a two-year vacancy increase and one- and/or two-year renewal increases, as needed, to bridge the gap between the last stabilized rent and tenant's lawful rent.

15 West 74th Street, Apt. G: DHCR Adm. Rev. Dckt. No. HC 410065-RO (3/30/94) [5-page document]