Landlord Can't Amend Tenant's Annual Rent Registrations

Landlord asked the DHCR for permission to file amended rent registrations for the years 2008 to 2010, in order to change the status of one apartment from rent stabilized to permanently exempt. Landlord claimed that tenant previously resided in another apartment at another building until May 2006, when, by written agreement with landlord, tenant surrendered her former rent-stabilized apartment for payment from landlord of $400,000, a voluntary move to the apartment in question under a two-year unregulated lease with a preferential monthly rent of $1,000 effective July 1, 2006, and the understanding that the new apartment wouldn't be subject to rent stabilization. The agreement also provided that tenant would be treated as rent stabilized in the new apartment, although no occupant would have succession rights. Landlord claimed that tenant's new apartment was mistakenly registered as rent stabilized for the years in question.

The DRA ruled against landlord, finding that an exemption from rent stabilization can't be effected by tenant's waiver of her rights. The DRA also said that landlord should retain all relevant rent records in the event that tenant sought a determination from the DHCR regarding the apartment's legal rent or her status.

Landlord appealed and lost. Under the 2014 Rent Stabilization Code amendments, landlord can't get a ruling on the apartment's status by amending the apartment registrations. Any question would have to be addressed in a rent overcharge complaint, lease violation complaint, or "AD" proceeding concerning the apartment status.

Extell L-Ecole LLC: DHCR Adm. Rev. Docket No. DM410029RO (7/8/16) [3-pg. doc.]