Rent Set After Building Deconverted from Cooperative Ownership

Tenant complained of a rent overcharge. The DHCR ruled for tenant, and landlord appealed. The court and appeals court ruled against landlord. Tenant's apartment automatically became rent stabilized when the building was deconverted from cooperative ownership, in 1996. In 1998, four years before tenant filed her overcharge complaint, tenant was paying $508 per month. Four years later, landlord demanded and tenant started paying $675 per month. Landlord claimed that it had asked the DHCR for guidance on setting rents after deconversion, but received none. Landlord claimed that $675 was tenant's first legal regulated rent under Rent Stabilization Code section 2520.11(1) because it was set by tenant's first lease after deconversion. The DHCR argued that since it had been at least four years after deconversion when tenant complained, the base rent should be the date four years before the date that tenant filed the rent overcharge complaint. The court found that the DHCR's interpretation of conflicting regulations was reasonable, and upheld its decision.

1000 LLC v. Calogero: NYLJ, 3/3/05, p. 25, col. 2 (App. Div. 1 Dept.; Buckley, PJ, Tom, Saxe, Friedman, Sweeny, JJ)