First Stabilized Rent Can't Be Preferential Rent

Rent-stabilized tenant complained of a rent overcharge. The DRA treated tenant's complaint as a fair market rent appeal since tenant was the first rent-stabilized tenant after the apartment was vacancy decontrolled from rent control. The DRA ruled for tenant and ordered landlord to refund $4,240 in excess rent. Landlord appealed and lost. Landlord claimed that the initial rent charged to tenant was a preferential $900 rent, but that the initial legal regulated rent was $1,100 and that landlord thereafter renewed tenant's rent based on legal rent, not preferential rent. But there can be no preferential rent if the legal regulated rent hadn't previously been established. The first rent charged to the first stabilized tenant became the initial legal regulated rent.

Pringle: DHCR Adm. Rev. Docket No. AS210011RO (11/27/12) [2-pg. doc.]