No Proof Apartment Decontrolled in 1954

Facts: Tenant and her husband moved into an apartment in a four-unit building in 1954. In 1971, landlord filed a report of statutory decontrol that stated that the apartment was owner-occupied before tenant moved in. New landlord bought the building in 1976. Tenant and her husband remained in the apartment while new landlord owned the building and were charged a modest rent. Tenant's husband and landlord eventually died. Landlord's estate then told tenant she was deregulated, and it was raising her rent by $800 per month. Tenant claimed that she was rent controlled and asked the DHCR for a ruling. The DRA ruled against tenant, finding that the apartment was deregulated. Tenant appealed.

DHCR: Tenant wins. A report of statutory decontrol isn't investigated when filed. Usually, the DHCR will assume the report is accurate if it isn't challenged until many years later. But for this assumption to hold, (a) the report must be filed at the time an apartment is claimed to be decontrolled; (b) after the filing, no other documents are filed that are inconsistent with the decontrol report; and (c) the tenant has acted in a manner consistent with the decontrol report. In this case, the decontrol report was filed 17 years after the apartment was supposedly decontrolled. In addition, prior landlord filed a rent history statement for the apartment with HPD in 1972, eight months after the decontrol report was filed. And prior landlord had treated tenant like a rent-controlled tenant, charging modest rent. Landlord would be unduly harmed by voiding the decontrol report, since tenant was charged a low rent for decades. And the building's other three tenants were all deregulated.

Raiola: DHCR Adm. Rev. Docket No. VI220015RT (12/11/07) [4-pg. doc.]