Setting First Rent for Former Super

Rent-stabilized tenant became the building superintendent in 1988. He stopped paying rent at that point and paid no rent from 1988 to 2003. New landlord terminated super's employment and asked the DHCR how to set a proper rent-stabilized rent for the super. In an opinion letter, the DHCR said that since tenant's apartment was exempt from stabilization for at least four years, there was no requirement under the Rent Stabilization Code to calculate rent guidelines increases over the last rent paid. But the Code also states that in such cases, the legal regulated rent will be the rent agreed to by landlord and first rent-stabilized tenant taking occupancy after the temporary exemption period. Or, if a lesser rent amount is shown in the first registration for a year starting after tenant takes occupancy, the legal regulated rent is the amount shown in the registration, as adjusted under the Code.

DHCR Opin. Ltr. by Michael B. Rosenblatt (12/1/04) [3-pg. doc.]