DHCR Must Reconsider Whether Initial Rent Exceeded Fair Market Rent

Tenant filed a fair market rent appeal with the DHCR. The DRA ruled against tenant, finding that the apartment's monthly fair market rent was more than the $6,000 charged to tenant when she moved in. Tenant appealed, and the case was reopened. The comparable apartment used by the DRA to assess tenant's fair market rent was a regulated rent and not an unregulated rent as landlord had claimed. So the DRA must reconsider what comparable rent, if any, should be used to set the first rent-stabilized rent for tenant's apartment, and then determine the initial legal rent for tenant's apartment. In addition, the proof submitted by landlord to support the individual apartment improvements (IAIs) claimed to have been done before tenant moved in wasn't sufficient. Landlord submitted invoices and checks that were dated well after performance of the work at issue. And some of the IAIs seemed to have been done after tenant moved in, without tenant consent for any rent increase. So, the DRA must also investigate the IAIs further.

Stoffel: DHCR Adm. Rev. Docket No. GS410061RT (1/24/19) [11-pg. doc.]