Tenant Claims Apartment Improperly Deregulated

Tenant complained of a rent overcharge. She moved into the apartment in 2003 at a monthly rent of $1,900. Landlord claimed that the legal regulated rent when tenant moved in was more than $2,000, so the apartment was deregulated. The DRA ruled for landlord and dismissed the complaint. After the DHCR denied tenant's PAR, she filed a court appeal, claiming that the DHCR's decision was arbitrary and unreasonable. Tenant claimed that because landlord received J-51 tax benefits, the apartment wasn't subject to high-rent vacancy deregulation. The court agreed and sent the case back to the DHCR, based on the Court of Appeals' ruling in Roberts v. Tishman Speyer Properties. In a new decision, the DHCR noted that the Roberts decision held that all buildings receiving J-51 benefits were excluded from high-rent vacancy decontrol. But the court left open various questions about rent overcharge calculation. The building had received J-51 benefits from 1998 through the date of the DRA's order. The case was sent back to the DRA to calculate whether tenant was overcharged.

Levi/63rd Street Owner, LLC: DHCR Adm. Rev. Docket No. YC410002RP (8/13/10) [2-pg. doc.]