Landlord's 2016 Application for Deregulation Sent Back to DRA for Reconsideration

Landlord filed a petition for high-rent/high-income deregulation of tenant's rent-stabilized apartment in 2016. The DRA ruled against landlord because a vacancy had occurred in 2015 and the legal regulated rent of the apartment was $2,500 or more per month, so the apartment was exempt from luxury deregulation and not subject to the DHCR's jurisdiction. Landlord appealed, and the case was reopened. Landlord sought clarification of the DRA's decision because the ruling may be contrary to the Rent Act of 2015. Prior to the 2015 vacancy tenant wasn't paying $2,700 per month in rent. If the DRA's decision was contrary to the 2015 Rent Act, landlord requested processing of its 2016 luxury deregulation application. The DRA granted landlord's request since there had not been a definitive court or DHCR decision on the issue of whether an apartment qualified for high-rent vacancy deregulation from 2015 and thereafter if the vacating tenant wasn't paying the deregulation threshold rent. So the DRA's order was revoked and the proceeding sent back to the DRA for further processing.

Glenwood Management Corp.: DHCR Adm. Rev. Docket No. FR410045RO (6/3/19) [2-pg. doc.]