Landlord Can Charge First Rent for Newly Created Unit

Tenant complained of a rent overcharge. The DRA ruled for tenant and landlord appealed. Landlord claimed, as he had before the DRA, that the rent charged to the first stabilized tenant on Aug. 1, 1980 wasn't subject to challenge. Landlord had combined two apartments into a single new apartment. The DHCR ruled for landlord. Landlord had created a new apartment by changing the outer perimeters of existing units. So, landlord was entitled to charge a free market rent to the first tenant who moved in thereafter. Future increases were subject to rent guidelines.

Lukin: DHCR Adm. Rev. Dckt. Nos. DK 410058 RO, DK 420160 RO (2/3/95) [4-page document]