Tenant in 421-a Building that Never Completed Co-op Plan Was Rent Stabilized

Tenant filed an application for an Administrative Determination (AD) by the DHCR, to determine his building's rent-regulatory status. The DRA found that the building received Real Property Tax Law 421-a tax benefits. Initially, landlord had constructed the building to be a cooperative, but no co-op plan was implemented, so apartment occupants were rent-stabilized tenants. The DRA ruled that tenant's initial legal rent in 2010 was $3,500 under a one-year lease, with subsequent renewal leases subject to rent guideline increases.

Tenant appealed and lost. Tenant sought further adjustment of his rent. But the DRA correctly calculated lawful rent increases based on actual lease renewals. Landlord and tenant also had settled a rent dispute in housing court and addressed a warranty of habitability issue. If tenant had further service complaints, he could file an application for a rent reduction based on decreased services.

Simmons: DHCR Adm. Rev. Docket No. GR210015RT (5/21/21) [3-pg. doc.]