Landlord Proved High-Rent Vacancy Deregulation of Apartment Occurred in 2018

Rent-stabilized tenant complained to the DHCR of rent overcharge and improper apartment deregulation in April 2019. Landlord claimed that there was no overcharge and that the unit had been vacancy-deregulated when tenant moved in. Landlord submitted proof of individual apartment improvements (IAIs) made to the unit before tenant moved in.

The DRA ruled against tenant. Using the four-year base date, the DRA found that there was no overcharge after applying a vacancy increase, longevity increase, and IAI rent increase based on 1/60th of landlord's $71,087 costs. The resulting legal vacancy rent was $2,831 per month, and the apartment therefore was vacancy-deregulated based on high rent when tenant moved in.

Tenant appealed and lost. Landlord proved its IAI costs, which increased the apartment rent as of Nov. 1, 2018, over the deregulation threshold. Proof included a copy of the renovation contract, a contractor change order, and cancelled checks payable to the contractor. 

Littlejohn: DHCR Adm. Rev. Docket No. LQ410021RT (1/22/24)[4-pg. document]