HDFC Co-op Apartment Exempt from Rent Stabilization

Tenant asked the DHCR to determine his rent regulatory status. The DRA ruled for tenant, finding that he was rent stabilized. Landlord appealed and won. The building was owned by a cooperative housing development fund corporation (HDFC) that was organized under Article XI of the New York State Private Housing Finance Law. Therefore, the building was exempt from rent stabilization under Rent Stabilization Law Section 26-504(a). In addition, Rent Stabilization Code Section 2521.1(1) states that former HDFCs that have been subject to foreclosure become subject to rent stabilization. Since landlord's building hadn't gone into foreclosure, it was reasonable to infer that the building was exempt. Also, in a Civil Court proceeding, landlord and tenant, by their attorneys, had agreed that the building wasn't rent stabilized. And tenant had withdrawn a separate service reduction complaint filed with the DHCR, stating that his apartment wasn't rent stabilized.

1372 Franklin Ave HDFC: DHCR Adm. Rev. Docket No. AO610007RO (6/10/14) [2-pg. doc.]