Tenant of Comparable Apartment Paying Preferential Rent

Tenant filed a fair market rent appeal. The DRA ruled for tenant and set the fair market rent based on the average of the regulated $1,030 rent of the downstairs apartment and the unregulated rent of $2,000 for another apartment in the same line as tenant's. Tenant appealed, claiming that tenant of the unregulated comparable apartment paid a preferential rent of $1,300 and that this was the figure that should be used as comparable rent. The DHCR ruled against tenant. Because no complaint was ever filed concerning the unregulated rent, it was proper to use that rent as a comparable. Under the DHCR's procedure, the fair market rent is the greater of the special guidelines amount and the rent for a comparable rent-stabilized unit. If, as in this case, the comparable is an unregulated rent, the rent for the comparable unit is averaged with the special guidelines amount.

Charron: DHCR Adm. Rev. Dckt. No. RI410062RT (11/19/03) [3-pg. doc.]