Landlord Can Use Comparable Rents of Apartments with Added Amenities

Tenant filed a fair market rent appeal to challenge the first rent-stabilized rent for his apartment, which was set in 1988. Landlord submitted information on comparable rents for slightly larger apartments in the same building with different amenities. Landlord also submitted comparability data for similar-size apartments in a building constructed in 1988 and subject to rent stabilization under the 421-a tax benefit program. The DRA ruled against landlord and rejected the new comparables landlord submitted, because tenant's building was constructed in 1940. The DRA rejected the comparables from the same building because the apartments had different features. Tenant's first rent was reduced from $1,055 to $850. Landlord appealed and won. The comparables in the building were in a line that was roughly the same size as tenant's. The fact that these apartments had sunken living rooms and full bay windows didn't prevent them from being comparable. As to the new apartments in the 421-a building, these weren't comparable. Although landlord had made improvements to tenant's apartment in 1988, the apartment was still in an older building that wasn't comparable to the new building. However, using the permissible comparables, the fair market rent was now higher than the rent charged tenant, and no refund was required.

Rose Assocs.: DHCR Adm. Rev. Dckt. No. LK410020RO (3/24/00) [6-pg. doc.]