Garage Space Still Rent Stabilized After Co-op Conversion

Rent-stabilized tenant in garden apartment complex complained of a rent overcharge after the building landlord, a cooperative corporation, raised his monthly garage space rent from $50 to $130. The DRA ruled for tenant and ordered a refund. Landlord appealed and lost. Landlord claimed that the garage space was unregulated. The owner of tenant’s apartment, which was the sponsor of the co-op conversion, didn’t currently own the garage or any parking spaces in it. Since the co-op conversion, tenant paid apartment rent to the sponsor and garage rent to co-op corporation. But tenant moved into the apartment in 1976 and began renting the garage space in 1979. The co-op conversion took place several years later. When tenant first rented the space, parking was an ancillary service provided to rent-stabilized tenants. So tenant’s garage rent remained subject to rent stabilization by law, and landlord collected a rent overcharge.

Stephen Gardens Corp.: DHCR Adm. Rev. Docket No. XC110038RO (12/21/09) [4-pg. doc.]