Landlord Didn't Prove Apartment Was Properly Vacancy-Deregulated

Tenant asked the DHCR in 2018 for an administrative determination (AD) that his apartment was subject to rent stabilization. In response, landlord claimed that the unit had been vacancy-deregulated. 

The DRA ruled for tenant. The DRA had asked landlord to submit rent history records dating back to 2000. But landlord submitted records dating back only to June 1, 2005. And the apartment hadn't been registered with the DHCR prior to 2002.

Landlord appealed and lost. Landlord claimed that the apartment was properly deregulated in 2007 due to high-rent vacancy deregulation in effect in 2006. But the DHCR found that the unit was unlawfully deregulated since landlord failed to substantiate its claims. The sole basis claimed for the purported deregulation was multiple and unlawful vacancy increases. Landlord failed to submit the complete and accurate rental report and hadn't served tenant the required notice that he was the first deregulated tenant and indicating the last legal rent, the reason the apartment was no longer subject to rent stabilization, and how the rent amount was computed. A mere claim by the owner that the unit was eligible for high-rent vacancy deregulation without adequate proof that the historical report was served on the tenant and filed with the DHCR was contrary to the Rent Stabilization Code. And, contrary to landlord's claim, the DHCR was permitted to look back more than four years to determine the apartment's regulatory status. 

124-136 East 117 LLC: DHCR Adm. Rev. Docket No. GO410035RO (8/8/22) [5-pg. document]