Landlord Proved Legal Vacancy Deregulation of Apartment in 2009

Tenant complained of rent overcharge in 2020 and claimed that his apartment had been improperly deregulated. The DRA ruled against tenant, who appealed and lost. Tenant moved into the apartment in 2009 and paid a monthly deregulated rent of $2,300. The fact that landlord registered the apartment in 2009 as deregulated based on "substantial rehabilitation" was an error and had no bearing on the apartment status. In response to tenant's complaint, landlord proved that it legally increased the prior legal regulated rent of $1,273 by a 16 percent vacancy increase plus a 1/40th IAI increase of $585.31. The legal rent then became $2,062, which was above the $2,000 vacancy deregulation threshold in effect at that time. Tenant didn't present sufficient proof that there was any fraudulent scheme to deregulate the apartment, and landlord submitted a contractor's affidavit and a paid invoice as proof of the IAI costs. A mere pre-base date increase in rent and mere allegation of fraud wasn't enough to invalidate the free-market base date rent.

Lefkowitz-Law: DHCR Adm. Rev. Docket No. JV210009RT (1/12/22)[3-pg. document]