Landlord Didn't Prove Apartment Was Vacancy Deregulated in 2013

Tenant complained to the DHCR of a reduction in required services. In response, landlord claimed that the apartment had been vacancy deregulated and wasn't subject to rent stabilization. The DHCR then opened a separate AD proceeding to determine the apartment's regulatory status. The DRA found that the apartment was rent stabilized. Landlord appealed and lost. Rent history records showed that a prior rent-stabilized tenant had a two-year lease that expired on Sept. 14, 2012, at a monthly rent of $798.50. Landlord claimed that the apartment was vacancy deregulated on Aug. 1, 2013, and that the rent was lawfully increased by an 18 percent vacancy increase, an eight-year longevity increase and an IAI increase based on 1/60th of $91,200.  Landlord argued that the resulting legal regulated rent was $2,500.53. But the DRA found conflicting records, including a rider to the Aug. 1, 2013, lease stating that landlord paid $59,900 for IAIs. It was therefore reasonable for the DRA to determine that the lawful vacancy rent on Aug. 1, 2013, was less than $2,500 and the apartment remained rent stabilized.

Midland 35th Realty LLC: DHCR Adm. Rev. Docket No. KX210012RO (6/7/24)[8-pg. document]