Lower Market Rent Used as Comparable

Tenant filed a fair market rent appeal. Her initial rent-stabilized rent was $1,900 in June 2001. The DHCR ruled against tenant. Landlord had submitted a comparable rent for a deregulated apartment, and the DHCR found that the comparable rent was $2,000, which was more than the rent tenant paid. Tenant appealed, claiming that the DHCR's decision was arbitrary and unreasonable. The court sent the case back to the DHCR for recalculation. Upon recalculation, the DHCR ruled for tenant. The market rent charged for landlord's comparable deregulated apartment was $1,300. Although the comparable apartment had been deregulated because the rent-stabilized rent had reached $2,000, the comparable rent used to calculate the fair market rent must be the actual rent charged. When recalculated, tenant's initial legal regulated rent was $1,337, and landlord was ordered to refund over $10,000.

Charron: DHCR Adm. Rev. Dckt. No. TK410008RP (2/6/06) [5-pg. doc.]