Tenant under HPD Regulatory Agreement in HDFC Building Wasn't Subject to Rent Stabilization

Tenant complained to the DHCR of rent overcharge in 2022. Tenant moved into the apartment in 2020 and his initial vacancy lease included an HPD Permanently Affordable Inclusionary Housing Program Rider stating that ll inclusionary housing units would be permanently affordable rent-stabilized units, and that the unit rents wouldn't exceed 30 percent of the qualifying income level. The lease also included an Annual Income Recertification Rider. An additional lease rider identified the legal regulated rent for the apartment as $2,060 per month under the Regulatory Agreement, with the actual collectible rent being $1,265 per month. The DRA dismissed tenant's complaint, finding that he wasn't subject to rent stabilization based on Rent Stabilization Code Section 2520.11(b). The apartment was owned by a Housing Development Fund Corporation (HDFC) and was instead subject to the Regulatory Agreement.

Tenant appealed and lost. The fact that landlord registered the apartment as rent stabilized with the DHCR didn't confer jurisdiction on the DHCR. Any rent disputes for this apartment must be brought before HPD or in a court of competent jurisdiction.

Omokha: DHCR Adm. Rev. Docket No. LT410002RT (11/13/23)[3-pg. document]