Landlord Can Charge First Rent for Formerly Exempt Apartment

Tenant complained of a rent overcharge. The DRA ruled against tenant, and tenant appealed. Tenant paid a monthly rent of $740 while the building was owned by a hospital and tenant was an affiliated employee. When the building was sold, new landlord sought renewal at $950 per month. The DHCR ruled for tenant in part. New landlord was entitled to set a first rent for tenant's apartment because it was previously exempt from rent stabilization while owned by a charitable institution that rented to tenant as an affiliated employee. But tenant has a right to demand that he be offered a two year lease. So his new lease was modified from one year to two years by DHCR.

Ziglar: DHCR Adm. Rev. Dckt. No. RG210075RT (9/24/03) [3-pg. doc.]