First Tenant Wasn't 'Illusory'

Facts: Tenant filed a fair market rent appeal. Tenant had moved into the apartment on April 1, 1985, at a monthly rent of $1,800. Tenant claimed she was first tenant to occupy the apartment after decontrol. Landlord claimed that prior tenant was first rent-stabilized tenant. Prior tenant had moved into the apartment on January 1, 1985, at a monthly rent of $1,800, and acknowledged receipt of the RR-1 form advising him of his right to challenge the rent. Tenant claimed that the prior tenancy was illusory. The DRA agreed with tenant. Tenant's first rent was reduced from $1,800 to $1,300. Landlord appealed, claiming that there was no illusory tenancy, and that prior tenant was legitimate rent-stabilized tenant who sublet the apartment to tenant with whom he had a relationship. Prior tenant was rent-controlled tenant's son. After the death of rent-controlled tenant, landlord and prior tenant agreed that the son would accept a rent-stabilized lease rather than face an eviction proceeding. Within a few months after prior tenant received the lease, he sublet the apartment to tenant. Shortly thereafter, landlord, prior tenant, and tenant agreed to assign the tenancy to tenant. DHCR: Landlord wins. The fact that prior tenant didn't occupy the apartment as his primary residence didn't make the tenancy illusory. There was no showing that landlord intended to evade rent stabilization laws by giving prior tenant a rent-stabilized lease. Prior tenant received a notice of fair market rent and never filed a challenge. Tenant's complaint was dismissed.

498 West End Realty Co./Reynolds: DHCR Adm. Rev. Dckt. Nos. IE410096RO, IF410007RT (5/12/97) [6-page document]