Lack of Registration Precludes Deregulation

Facts: Rent-controlled tenant vacated his apartment in 1994. His last rent was $113 per month. Landlord then renovated apartment, which was in a building otherwise subject to rent stabilization, and charged new tenant $2,200 per month. Landlord didn't send or file an initial DHCR rent registration statement (RR-1). Landlord later sued to evict tenant for nonpayment of rent. Tenant claimed that landlord was barred from collecting the rent charged because it never registered the apartment. Landlord claimed that since the legal rent was over $2,000, rent registration wasn't required. Court: Landlord loses. Landlord must send and file the RR-1 form even if first rent after decontrol is $2,000 or more. The DHCR has stated this position in a 1994 opinion letter. Tenant still has the right to file a fair market rent appeal within 90 days of service of the RR-1, and the DHCR can determine if the $2,200 rent was proper, using its standard fair market rent appeal procedures.

101 W. 70th St. Assocs. v. Desoiza: NYLJ, p. 28, col. 3 (4/9/97) (Civ. Ct. NY; Shafer, J)