Pre-Base Date Lease Shows Apartment Was Deregulated

Unregulated tenants complained of rent overcharge and improper deregulation of their apartment. Landlord argued that, on the January 2011 base date, the apartment was already lawfully deregulated and that there was no overcharge. Landlord submitted a copy of the last pre-base date rent-stabilized lease for the apartment from 2007. That lease contained a preferential rent rider. Landlord showed that the base date lease from January 2010 was non-regulated at a monthly rent of $2,065. Landlord also pointed out that the complaining tenant was the second deregulated tenant in the apartment. The DRA ruled for tenant, finding that the apartment was rent stabilized. The DRA also found a small overcharge of $274. Landlord appealed and lost, then filed an Article 78 court appeal. Landlord claimed that the DHCR's decision was arbitrary and unreasonable. The court sent the case back to the DHCR for further consideration. The DHCR then ruled that the apartment was unregulated by the time tenants moved into it in 2011. Therefore, tenants' complaint was dismissed.

43-09 47th Ave LLC: DHCR Adm. Rev. Docket No. GW110003RP (2/8/19) [3-pg. doc.]