No Overcharge Where Apartment Was Vacancy Deregulated Before Tenant Moved In

Tenant complained to the DHCR of rent overcharge and improper apartment deregulation after moving into the unit in 2016. The DRA ruled for tenant, found that the unit was rent stabilized and ordered landlord to refund $12,968, including interest and triple damages, for overcharges collected from May 2016 through June 2018. Landlord appealed and won. The apartment's 2005 legal regulated rent increased to a level in excess of the applicable $2,000 deregulation threshold, based on a combination of individual apartment improvements (IAIs) and the statutory vacancy increase. J-51 tax benefits that were in effect at that time expired on June 30, 2008. The next vacancy then resulted in legal deregulation of the apartment on Aug. 8, 2009. There was no overcharge and no requirement to register the apartment.

First Lenox Terrace Associates, LLC: DHCR Adm. Rev. Docket No. LP410011RO (7/5/23)[3-pg. document]