New Rent Set for Former Tenant

Landlord asked the DHCR to set tenant's legal rent. Tenant had a rent-stabilized lease in 1981 for $277.50. Then tenant's husband became the building super for 28 years, and tenant paid no rent. After the super's employment ended, landlord claimed that tenant should pay $1,586 per month. This was the average of the rents of the other four apartments in tenant's line. Tenant claimed that she should pay just a renewal increase above $277.50, her last rent.
The DRA ruled for landlord in part, setting tenant's rent at $1,409. This was the lowest monthly rent of any apartment in tenant's line. Tenant appealed. The DHCR ruled for tenant in part. When the legal rent is unknown or there have been unusual circumstances, Rent Stabilization Code Section 2522.6(a) permits the DHCR to set the legal rent. But the DHCR can look at the rent history for only the past four years. So the DHCR couldn't use tenant's 1981 rent to set the rent. Since there was no stabilized lease for tenant's apartment on the base date four years ago, the DRA was required to use a comparability study to set tenant's rent. But the DRA should have looked at all three-room apartments in the building, not just the rents in tenant's line. The DHCR set tenant's rent at $1,287, which was the average rent for all of the apartments with three rooms. The new rent was lower than any rent in tenant's line, and it would be unfair to landlord to set tenant's rent at the lowest rent for any three-room apartment in the building.

Radoncic: DHCR Adm. Rev. Docket No. WC420035RT (5/15/08) [3-pg. doc.]