Legal Rent Was $400 Rent Paid by Former Janitor While He Occupied Apartment

Landlord asked the DHCR in 2016 for a ruling on the legal regulated rent for an apartment. Landlord claimed that the apartment occupant had been the building's janitor until his employment was terminated in August 2015. The prior landlord had registered the apartment with a legal rent of $1,200 per month. The occupant claimed this was inaccurate. The DRA ruled for occupant, finding he was a rent-stabilized tenant and that the legal rent was $400 per month. Landlord appealed and lost, then filed an Article 78 court appeal of the DHCR's decision. The parties agreed to send the case back to the DHCR for further consideration.

The DHCR again ruled against landlord. RSC Section 2520.11(m) exempts apartments occupied by building service employees "without payment of rent." In this case, the janitor had lived in the apartment while working there for 33 years. For 10 of those years he paid $400 per month for rent. In the absence of a lease indicating a different rent, the DRA reasonably determined that the rent paid by the janitor was the legal rent, and that he was rent stabilized.

31-36 32nd Street Owner LLC: DHCR Adm. Rev. Docket No. JN110001RP (3/29/23)[4-pg. document]