DHCR Recalculates Legal Rent for Rent-Stabilized Tenant in SRO Hotel

After an appeals court ruled in 2015 that an SRO hotel occupant qualified as a permanent tenant under rent stabilization, landlord applied to the DHCR for a ruling to determine the unit's legal regulated rent. In 2017, the DRA set the monthly rent at $385, by using the average rent of comparable stabilized units in the building at the time in 2015 when tenant moved in. The DRA used this method since the unit hadn't previously been occupied by a rent-stabilized tenant. Tenant appealed and claimed that the DRA's calculation method was flawed.

The DHCR ruled for tenant in part. The rent for one of the units used as a comparable was excessive, not reliable, and therefore was excluded. The rent of another unit couldn't be used because it was a double apartment not comparable in size to tenant's unit. So, the DHCR recalculated the rent for tenant's unit to $353.50 per month. Tenant also claimed that landlord hadn't given him a Notice of Rights when he moved in. Tenant could start a separate proceeding with the DHCR to seek enforcement of any additional rights, and landlord should give tenant this notice if it hadn't already done so.

Ahmed: DHCR Adm. Rev. Docket No. FQ410007RT (4/1/21) [5-pg. doc.]