Rent of Apartment in Neighboring Building Used as Comparable

Tenant complained that his initial 1991 monthly stabilized rent of $650 was greater than the fair market rent. Landlord submitted comparable rents from an unregulated neighboring building and claimed that tenant's rent was proper. The DRA ruled for tenant and reduced his first rent to $440. The DRA disallowed landlord's comparables. Landlord appealed and won. The DHCR now accepted comparables from unregulated buildings. For unregulated comparables, the DHCR calculated the average of the comparables and the special guidelines rent to set the fair market rent. In this case, the special guidelines rent was $113 and the comparable rent was $1,500. So the fair market rent was $807, which was more than landlord charged tenant. Tenant's fair market rent appeal was dismissed.

First Ave. Equities: DHCR Adm. Rev. Dckt. No. JA410350RO (12/5/03) [5-pg. doc.]