Market Rents Can't Be Used as Comparables

Tenant complained of a rent overcharge to the DHCR, claiming she was the first rent-stabilized tenant in the apartment. The DRA asked landlord to submit comparability data, and landlord submitted rents of co-op units in a neighboring building. Landlord argued that these were the only comparables it could use, and that they should be accepted as ''market rents.'' The DRA refused to use landlord's comparables, and set tenant's rent using the special fair market rent guideline. Landlord appealed, and the DHCR upheld the DRA's ruling. Landlord can only use market rents as comparables if they were in effect on the date of tenant's first rent-stabilized lease. In this case, tenant's lease began in November 1990, and the three comparables landlord submitted had leases starting after thatin March 1991 and July 1991. So, the DRA had properly relied on the special guidelineand not on the comparables.

33 Crooke Ave., Apt. 5B: DHCR Adm. Rev. Dckt. No. GC 210301-RO (10/28/94) [4-page document]