DHCR Allows Landlord to Use Unregulated Rents as Comparables

(Decision submitted by David B. Cabrera of the Queens law firm of Horing Welikson & Bienstock, P.C.) Tenant filed a fair market rent appeal, challenging the initial legal regulated rent of his apartment. The DRA ruled for tenant and reduced his initial rent from $675 to $200. Landlord appealed, claiming that the DRA unfairly rejected its comparability data. The DHCR ruled for landlord. The other initial stabilized rents for apartments in the same line as tenant's apartment didn't qualify as comparables because their initial rents were established more than four years before tenant's first rent. But since landlord submitted complete data for the apartments in tenant's line, the DRA should have used additional information submitted by landlord on other unregulated apartments in the neighborhood. The average between tenant's rent and the comparable rents was $694, more than tenant's rent. Therefore landlord owed tenant no refund and the DRA's order was revoked.

Diligent Properties Assoc.: DHCR Adm. Rev. Dckt. No. JK210135RO (2/28/96) [4-page document]