Former Dental Office Converted to Apartment in 2015 Became Deregulated

Tenant complained of rent overcharge and improper deregulation of his apartment. The DRA ruled for tenant, finding the apartment to be rent stabilized and directing landlord to refund $35,392, including interest. Landlord appealed and lost, then filed an Article 78 court appeal of the DHCR's decision. The court sent the case back to the DHCR for further consideration. The DHCR then ruled for landlord in part. The apartment wasn't registered with the DHCR between 1984 and 2015 because it was used as a dental office between 1969 and 2015. Since the unit was used for professional purposes during that time, it was exempt from rent stabilization. And because the apartment had never been occupied as a residence prior to July 1, 2015, the case was different from a case where there was a period of temporary exemption from rent stabilization due to, e.g., owner occupancy. So landlord didn't have to charge tenant a first "stabilized" rent. Landlord properly charged tenant a rent of $3,500 per month, which exceeded the deregulation threshold in 2015. Based on the rent charged, the apartment never became subject to rent stabilization.  

201 Parkway Co. LLC: DHCR Adm. Rev. Docket No. IT210001RP (11/17/20)[4-pg. doc.]