New Greenhouse Doesn't Qualify Apartment for ‘First Rent'

Tenant complained of a rent overcharge. Landlord claimed that it had altered the configuration and special dimensions of tenant's apartment by adding a greenhouse to the outside deck area. Landlord argued that this created a new apartment with greater living space, so landlord was entitled to set an initial stabilized rent. The DRA allowed landlord only a 1/40th increase over the prior stabilized rent for the cost of the greenhouse. Otherwise, the DRA ruled that landlord had willfully overcharged tenant. Landlord appealed. The DHCR noted that in order to qualify for a first rent, apartment alterations must be so substantial as to create a new unit. The apartment's dimensions must be changed. Here, landlord merely created new interior space out of pre-existing exterior space that was already part of the apartment. Landlord didn't create a new unit. The issuance of a new certificate of occupancy didn't prove there was a new unit. The DHCR did rule that, given the extent of the work done, landlord didn't willfully overcharge tenant, and revoked the triple damages

[348 West End Avenue, Apt. 3C: DHCR Adm. Rev. Dckt. No. EC 410074 RO (12/16/92)]. 4-page document.