Prior Tenant Never Filed Fair Market Rent Appeal

Landlord sued to evict tenant for nonpayment of rent. In response, tenant claimed rent overcharge and improper deregulation of his apartment. The court granted landlord's request to dismiss tenant's claims. The apartment was rent controlled until May 2001. Prior landlord and the next tenant then signed an unregulated lease dated May 24, 2001, at a monthly rent of $3,000. Landlord also mailed to that tenant an initial apartment registration form (RR-1) and filed an Owner's Report of Vacancy Decontrol (RR-42V) with the DHCR. The first tenant after rent control didn't file a fair market rent appeal within 90 days after prior landlord sent the RR-1 notice, nor within four years after the 2001 apartment deregulation. Therefore, $3,000 was the first lawful rent and could no longer be challenged. The complaining tenant paid $3,200 per month under his first lease in 2003. The building had received J-51 tax benefits, and landlord had admitted that tenant's apartment was rent stabilized after the Court of Appeals 2009 Roberts decision and started registering rents. There was no rent overcharge since 2013. 

400 E58 Owner LLC v. Herrnson: 64 Misc.3d 1202(A), 2019 NY Slip Op 50967(U) (Civ. Ct. NY; 6/13/19; Ortiz, J)