Landlord Can Charge Free Market Rent After Building Reclassified

Tenants complained of a rent overcharge after their building was reclassified from a hotel to rent-stabilized apartments. The DRA ruled against tenants. Tenants appealed, claiming that landlord illegally installed a bathroom in one apartment and a kitchen in another. As a result of these installations, tenants claimed that asbestos was released in their apartments, so landlord couldn't charge free market vacancy rents to tenants upon reclassification. The DHCR ruled against tenants. The claimed illegal installations didn't bar landlord from setting free market rents upon tenants' initial occupancy. And the DRA had reduced the free market vacancy rents based on a reduction of hotel services and reclassification of the building. No further reductions in rent were warranted.

Do Vos: DHCR Adm. Rev. Dckt. Nos. RF440017RP & RF440018RP (11/19/03) [3-pg. doc.]