Temporarily Exempt Apartment Was Regulated for Purposes of "35% Calculation"

Landlord applied for MCI rent hikes based on hallway renovation, related hallway work, installation of a TV/security system, and rewiring. The DRA ruled against landlord because only eight of the building's 23 tenants were rent regulated. This constituted 34.7 percent of building tenants. Under the HSTPA, effective June 14, 2019, MCI increases were prohibited for buildings with 35 percent or fewer rent-regulated tenants.

Landlord appealed, and the case was reopened. Landlord argued that 39.1 percent of the building's tenants were rent regulated. The building's basement apartment, which the DRA had counted as exempt was in fact only "temporarily exempt" due to employee occupancy. The DHCR agreed. For purposes of the HSTPA's "35 percent calculation," the temporarily exempt apartment should be considered regulated. The case was sent back for further processing. [To download decision, click here.]

Ironton Realty, LLC: DHCR Adm. Rev. Docket No. IM430035RO (8/31/23)[2-pg. document]