No Vacancy Allowance When Setting First Rent

Tenant filed a fair market rent appeal, challenging the first rent-stabilized rent of his apartment. The DRA ruled for tenant and reduced his rent. Landlord appealed, claiming that the DRA should have included a vacancy allowance in its calculation of the fair market rent. The DRA ruled against landlord. Under the rent stabilization law and code, only that part of the annual Rent Guideline Order referred to as the ''Special Guidelines'' is used to determine the proper percentage increase above the Maximum Base Rent. Landlord couldn't collect a vacancy allowance. Also, landlord was given the chance to submit comparability data for tenant's apartment, which could have resulted in an additional rent increase in setting the fair market rent. The data landlord submitted was inaccurate and so was unusable.

Greisman: DHCR Adm. Rev. Dckt. No. EB410327RO (10/7/97) [2-page document]