No First Rent for Eliminating Closet

March 1, 1998

LVT Number: 12174

Tenant complained of a rent overcharge. The DRA ruled for tenant, and landlord appealed. Landlord claimed he could charge a first stabilized rent because he'd changed the dimensions of the apartment by eliminating a closet. The DHCR ruled against landlord. Eliminating a closet didn't merit charging a first rent to tenant. DHCR policy requires a substantial change in the dimensions of an apartment, resulting in an apartment that wasn't previously in existence. The removal of one closet doesn't substantially change the apartment's dimensions.

Tenant complained of a rent overcharge. The DRA ruled for tenant, and landlord appealed. Landlord claimed he could charge a first stabilized rent because he'd changed the dimensions of the apartment by eliminating a closet. The DHCR ruled against landlord. Eliminating a closet didn't merit charging a first rent to tenant. DHCR policy requires a substantial change in the dimensions of an apartment, resulting in an apartment that wasn't previously in existence. The removal of one closet doesn't substantially change the apartment's dimensions. Landlord's claim that he believed in good faith that he could set a first rent in this situation wasn't believable. The DRA's finding of willful rent overcharge was upheld.

Schwartz/Shenandoah Holdings/Gumowitz: DHCR Adm. Rev. Dckt. Nos. KH410127RT, KI410043RO, KI410014RO (10/7/97) [12-page document]

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