Landlord Set Lawful Legal Regulated Rent After Unit's Temporary Exemption

Rent-stabilized tenants complained of rent overcharge. In 2018 the DRA ruled against tenants, finding that the 2021 base date rent of $1,582 charged to tenants was proper. Tenants appealed and lost. Tenants claimed that the DRA should have reviewed rental events that occurred before the base rent date due to landlord's fraud. But the DHCR found no indication of fraud. Under Rent Stabilization Code Section 2526.1 that was in effect in 2012, landlord was permitted to set an agreed-upon rent with tenant after the apartment had been temporarily exempt from rent stabilization. So, the $1,582 rent set in 2012 was a legal regulated rent. And any individual apartment improvements (IAIs) performed prior to the base date aren't subject to review absent proof of fraud to deregulate the apartment. Landlord also submitted sufficient proof to justify the pre-base date IAIs in the form of contractor affidavits. 

Winslow: DHCR Adm. Rev. Docket No. IS110048RK (3/5/21) [7-pg. doc.]