DHCR Can Determine Apartment's Legal Regulated Rent in Response to Tenant Application

Tenant asked the DHCR in 2015 for an administrative determination of the legal regulated rent (LRR) of his apartment. Tenant submitted copies of his leases with the application, and pointed out that he had requested a rent registration history of the unit from the DHCR and had received three different registration records, listing the apartment alternatively as 6D, 6D(D226), and 6D(226). In response to notice of tenant's application, landlord submitted lease records and copies of DHCR registration rent rolls for 2013, 2014, and 2015. Landlord also claimed that the apartment was vacancy deregulated.

The DRA ruled that tenant's apartment was rent stabilized and that the LRR was $1,198.45 per month as of June 3, 2021. Landlord appealed and won, in part. RSC Section 2522.6 provides that, where the LRR is in dispute, is in doubt, or is not known, the DHCR can issue an order to determine the legal regulated rent. The DRA did not err in refusing to include the costs of landlord's individual apartment improvements (IAIs) in setting the LRR because landlord didn't supply sufficient proof of the improvements. The DRA properly determined that the base date was Nov. 6, 2011, four years before tenant filed his application. But the DHCR recalculated the LRR based on submitted leases and found the LRR to be $1,491.66 as of March 31, 2020. Tenant's claim of rent overcharge would be determined in a separate pending complaint filed by tenant with the DHCR.

Dunbar Owner LLC: DHCR Adm. Rev. Docket No. JS410027RO (3/17/23)[5-pg. document]