Landlord Employed Tenant's Mother

Facts: Tenant complained of a rent overcharge. She claimed that for 13 years landlord didn't increase her monthly rent from $135 and didn't provide lease renewals. Then, in 1984, landlord offered tenant a renewal lease at $250 per month. Landlord claimed that tenant had paid a reduced rent all those years because landlord employed tenant's mother until the end of 1983. Landlord had registered the apartment in 1984 as exempt. The DRA ruled that landlord could offer tenant a renewal lease, but only at Guidelines increases over $135. Landlord appealed, again arguing that a formerly exempt tenant was now becoming rent-stabilized and that he was entitled to set a first rent. DHCR: The apartment wasn't exempt while landlord employed tenant's mother. Such exemption is authorized under the Rent Stabilization Code only if the employee occupies an apartment as part of her compensation and pays no rent. However, the DHCR sent the case back for the DRA to determine if landlord charged tenant a specially reduced rent between 1980 and 1984. If so, the DRA should give landlord equitable consideration, and possibly set a higher base rent from this point forward.

[855 East Seventh Street, Apt. 6T: DHCR Adm. Rev. Dckt. No. BF 210097 RO (12/16/92)]. 3-page document.