HPD Restructured Rents

Tenant complained of a rent overcharge. The DRA found that tenant was the first stabilized tenant of the apartment in 1985, and treated tenant's complaint as a fair market rent appeal. The DRA reduced tenant's $1,000 rent to $415. Landlord appealed, claiming that the building had been extensively renovated through a government loan and that HPD had restructured the rent of tenant's apartment in 1983, before tenant moved in. The HPD had certified that the apartment was rent-controlled at that time. So, landlord thought it was entitled to charge a free market rent to tenant in 1985. The DHCR found that landlord's assumption was incorrect. The apartment had actually been decontrolled in 1973. The apartment was subject to rent stabilization in 1983, so the rent set by HPD was the stabilized rent, and all rent increases above that had to be set in accordance with Rent Guidelines Board increases. The lawful rent for tenant's apartment in 1985 was only $335.

31-33 Market Street, Apt. 7: DHCR Adm. Rev. Dckt. Nos. EC 410197-RO, EC 410264-RT (5/6/93) [9-page document]