Tenants Don't Have to Pay Rent of $2,000 for Deregulation

(Decision submitted by James R. Marino of the Manhattan law firm of Kucker & Bruh, LLP, attorneys for the landlord.) Tenant complained of a rent overcharge. The DRA treated the complaint as a fair market rent appeal because the last prior tenant was rent controlled. Landlord claimed that the apartment wasn't rent stabilized because the rent was $3,500 when tenant moved in. The DRA ruled against tenant. Tenant appealed, arguing that vacancy deregulation can occur only after a tenant has actually paid $2,000 per month, not merely when the permitted legal rent becomes $2,000 or more. The DHCR ruled against tenant. The apartment had a collectible legal rent of $2,000 or more, on or after April 1, 1994, when tenant moved in. The rent was based on the prior rent-controlled rent, plus the applicable special guideline, plus 1/40th improvement costs.

Elkind: DHCR Adm. Rev. Dckt. No. OK410073RT (3/14/01) [4-pg. doc.]