DHCR Must Reconsider Whether Apartment Was Deregulated

Tenant complained of rent overcharge and improper apartment deregulation. The DRA ruled for tenant and ordered landlord to refund $6,352, including interest. Landlord and tenant both appealed, and the DHCR reopened the case. The DHCR found that it was unclear whether tenant's apartment was subject to rent stabilization. With its PAR, landlord had submitted a non-stabilized lease for the period between 10/17/07 and 10/16/08 at a rent of $2,100 per month. Landlord claimed that this was a properly deregulated lease entered into after a prior rent-controlled tenant moved out. Landlord also registered the apartment as temporarily exempt in 2008. Although landlord didn't submit the 2007 lease to the DRA, the DHCR can't assert jurisdiction over the overcharge case if the apartment was previously legitimately deregulated. So, the case must be sent back to the DRA for further consideration. On the other hand, if the DRA finds that the apartment wasn't deregulated in 2007 or 2008, the apartment was rent stabilized and tenant's rent frozen due to a 2011 rent reduction order, in effect until 2014. If the apartment was rent stabilized when the rent reduction order was issued, it couldn't have been deregulated while that order was in effect. 

Peralta/507-517 West 171 St LLC: DHCR Adm. Rev. Docket Nos. GP410072RT, GQ410030RO (5/30/19) [8-pg. doc.]