Leases Prove Apartment Was Deregulated Before Tenant Moved In

Tenant asked the DHCR to determine the regulatory status of her apartment. The DRA ruled that the apartment wasn't rent stabilized since it became vacant on or after June 19, 1997, with a legal regulated rent of $2,000 and therefore became exempt from rent stabilization when prior tenant moved in. Tenant appealed and lost. Landlord submitted rent history records, including a vacancy lease for a prior tenant showing a monthly $1,600 rent in November 2002, followed by three renewal leases for that tenant. That tenant's legal regulated rent under his final 2007 renewal lease was $1,919 while he paid a preferential rent of $1,600. The next tenant paid $2,000 per month under a vacancy lease commencing March 1, 2009. That tenant's rent was legal after applying a 16 percent vacancy increase and was above the vacancy deregulation threshold then in effect. Even if landlord didn't give that tenant an "exit" rider with his vacancy lease, the apartment was permanently exempt under high-rent vacancy deregulation rules. There was also nothing to support tenant's claim of fraud. Landlord amended its rent registrations in 2007 and 2009 to reflect the deregulation, well before tenant filed her complaint. 

Olson: DHCR Adm. Rev. Docket No. CX210041RT (5/11/18) [6-pg. doc.]