Tenant's HUD-Regulated Apartment Wasn't Subject to Rent Stabilization

Tenant complained of rent overcharge. The DRA ruled against tenant, finding that his apartment wasn't subject to rent stabilization. Tenant appealed and lost. A Memorandum of Ground Lease between landlord NYCHA and building tenant, an HDFC, stated that tenant's apartment is a "Public Housing Unit." A HUD Regulatory Agreement also specified that tenant's apartment was a Public Housing Unit. RSL Section 26-504(a)(1) includes, as an exception to rent stabilization coverage, dwelling units owned or leased by, or financed by loans from, a public agency or public benefit corporation and subject to rent regulation under the Private Housing Finance Law. RSC Section 2520.11(j) also listed as an exception to coverage "housing accommodations contained in buildings operated exclusively for charitable purposes on a non-profit basis." And a nonprofit cooperative corporation organized under the Private Housing Finance Law article XI is statutorily exempt from rent stabilization both because it is a housing cooperative and because it is operated for charitable purposes.

Finn: DHCR Adm. Rev. Docket No. KP410031RT (6/15/22)[4-pg. document]