Landlord Seeks Deregulation of Combined Apartments

Landlord applied for high-rent/high-income deregulation of tenant's apartment. The DRA ruled for landlord because tenant didn't respond to the notice of the application. Tenant appealed, claiming that he rented two separate apartments and that the rent for each one was less than $2,000 per month. The DHCR reopened the case for further consideration. Usually, landlord or tenant can't raise new issues for the first time on appeal. But if tenant's apartments were separate and rented for less than $2,000 each, the DHCR couldn't deregulate them in the first place. Landlord claimed that the apartments were combined and used as one residence. Tenant claimed that the apartments were connected only by an internal staircase from the first floor to the basement. He said he used the basement apartment exclusively as his law office, that it was listed on his renewal lease as an office, and that the C of O permitted only an office or a boiler room in the basement. The DRA must investigate the facts further to determine whether the apartments are physically connected enough to be considered one unit.

Feldman: DHCR Adm. Rev. Docket No. UA410031RT 7/11/06 [4-pg. doc.]