First Rent' Rule Applies to ETPA Counties

Landlord asked the DHCR whether the ``first rent'' doctrine applied in ETPA counties. Landlord wanted to combine two rent-stabilized apartments to create a new apartment. In an opinion letter, the DHCR said yes. The DHCR interpreted the Rent Stabilization Code to permit the creation of a new apartment with an initial legal regulated rent that wasn't subject to a fair market rent appeal. Thereafter the ``first rent'' was subject to rent guidelines increases. While there was no equivalent provision in the Tenant Protection Regulations, the practice had been upheld by courts, and the DHCR applied it outside New York City.

DHCR Opin. Ltr. by Charles Goldstein (7/3/96) [2-page document]