No Deregulation If Tenant's Renewal Lease in Effect When HSTPA Enacted

Landlord applied for high-rent/high-income deregulation of tenant's rent-stabilized apartment in 2017. The DRA ruled for landlord on Feb. 15, 2019, because tenant admitted that his annual household income for both 2015 and 2016 was above $200,000. The DRA deregulation order noted that deregulation didn't take effect until any renewal lease in effect on the date of the order expired. On Sep. 6, 2019, the DRA issued an Explanatory Addenda (EA) to the deregulation order, noting that if tenant had a renewal lease in effect when HSTPA was enacted on June 14, 2019, he remained rent stabilized because HSTPA abolished high-rent/high-income deregulation effective June 14, 2019. 

Landlord and tenant both appealed. The DHCR ruled for tenant. Tenant pointed out that his renewal lease in effect when the deregulation order was issued was still in effect when HSTPA was enacted. Landlord objected to the DHCR's EA. The DHCR stated that the EA wasn't based on any new findings or determinations by the DRA. Instead, HSTPA repealed the law's high-rent/high-income deregulation provisions, effective June 14, 2019. Since tenant's latest rent-stabilized renewal lease was still in effect at that time, deregulation was no longer available when that renewal lease expired.

Brenner/Belnord Partners LLC: DHCR Adm. Rev. Docket Nos. HV410274RO, HO410007RT (7/17/20) [6-pg. doc.)