Landlord Can't Seek Rent Regulation Exemption Ruling Before DHCR After Court Ruling

Tenant applied to the DHCR in 2015 for a ruling on her rent regulatory status. She had moved into Apt. 3F in  2013 at a monthly rent of $3,950, and landlord claimed that she was unregulated. The DRA ruled for tenant and found that she was rent stabilized.

Landlord appealed and lost, based on prior court rulings on the same issues raised in the DHCR proceeding. Landlord had commenced an eviction proceeding against tenant in 2014, claiming that she was unregulated. In that case, the housing court ruled for tenant and found that she was rent stabilized. Landlord appealed that decision and the Appellate Term, Second Dept. agreed that the apartment was rent stabilized. The appeals court found that landlord's proof was insufficient to support a finding that the building or apartment had been substantially rehabilitated and was therefore exempt from rent stabilization. The court found that, although landlord had presented extensive proof of construction work done, it failed to show that the building was in substandard condition before work was performed. Landlord also had commenced a second eviction proceeding that claimed that the apartment was exempt due to high-rent vacancy deregulation before tenant moved in. The court held that landlord's failure to raise that issue during the first eviction proceeding precluded it from raising the issue in the second eviction case.

867-871 Knickerbocker, LLC: DHCR Adm. Rev. Docket No. GR210011RO (8/25/23)[5-pg. document]