High-Rent Apartment Already Deregulated

In 2007, landlord applied for high-rent/high-income deregulation of tenant's apartment. The DRA dismissed landlord's application, finding that the apartment had become vacant between April 1, 1994, and April 1, 1997, with a legal rent of $2,000 per month or more. Therefore, the apartment already was deregulated. Landlord appealed, claiming that the building was rent-stabilized solely due to receipt of 421-a tax benefits for new construction under the Real Property Tax Law. Therefore, landlord argued that the apartment wasn't eligible for vacancy deregulation between 1994 and 1997. The DHCR ruled against landlord. The apartment was deregulated, but not for the reason stated by the DRA. Landlord's 421-a tax benefits expired on June 30, 1996. Tenant moved into the apartment on Oct. 1, 1996. So tenant was never subject to rent stabilization.

Rivergate LP: DHCR Adm. Rev. Docket No. VK410041RO (2/21/08) [3-pg. doc.]