Former Rent-Controlled Apartment Was Vacancy Deregulated

January 16, 2018

LVT Number: #28129

Tenant complained of rent overcharge. Landlord claimed that the apartment had been deregulated. The DHCR ruled for tenant, and landlord filed an Article 78 court appeal. The court ruled against landlord and found that a rent overcharge occurred. Landlord appealed and won. The DHCR incorrectly determined that the apartment was rent stabilized. After the prior rent-controlled tenant moved out, the rent reached the $2,000 deregulation threshold due to a combination of vacancy and individual apartment improvement (IAI) rent increases that were not challenged.

Tenant complained of rent overcharge. Landlord claimed that the apartment had been deregulated. The DHCR ruled for tenant, and landlord filed an Article 78 court appeal. The court ruled against landlord and found that a rent overcharge occurred. Landlord appealed and won. The DHCR incorrectly determined that the apartment was rent stabilized. After the prior rent-controlled tenant moved out, the rent reached the $2,000 deregulation threshold due to a combination of vacancy and individual apartment improvement (IAI) rent increases that were not challenged. So the apartment qualified for exemption from rent stabilization, regardless of whether tenant was actually charged and paid a monthly rent that was less than the deregulation threshold rent.

COB 3420 Broadway, LLC v. Towns: 2017 NY Slip Op 09258, 2017 WL 6612713 (App. Div. 1 Dept.; 12/28/17; Friedman, JP, GIsche, Webber, Kahn, Singh, JJ)

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