Rent Charged When Unregulated Apartment Becomes Subject to J-51 Becomes Regulated Rent

Tenant complained of rent overcharge. The DRA ruled against tenant, finding that landlord had created a new apartment and was entitled to a market rent. Tenant appealed, and the DHCR reopened the case for further consideration. The DRA ruled against tenant again. First, landlord showed that the building had been substantially rehabilitated. So, as of June 2007, the apartment wasn't subject to rent stabilization. When landlord began receiving J-51 benefits for the building in January 2010, the apartment again became subject to rent stabilization. But the $1,975 monthly rent paid by tenant on Jan. 28, 2010, became the initial legal regulated rent and the base rent for considering whether there was an overcharge. Tenant appealed again, and the DHCR ruled against tenant. The DRA correctly set the base rent and found no overcharge.

Williams: DHCR Adm. Rev. Docket No. FU210003RK (1/23/18) [5-pg. doc.]