Tenants Were Rent Controlled, Not Rent Stabilized

Rent-controlled tenants complained of rent overcharge. They claimed that they moved into the apartment in 1968 and in 2007 landlord started issuing leases and improper rent increases. In a separate decision, the DHCR had determined that the apartment was rent controlled. Landlord claimed that tenants were rent stabilized. The DRO ruled for tenants, finding that they were rent controlled and set the maximum collectible rent (MCR) at $364.59 effective Feb. 1, 2010. Landlord and tenants both appealed. Landlord claimed that the MCR should be higher. Tenants claimed that the rent should be lower. The DHCR ruled against landlord and for tenants. Landlord didn’t offer a reasonable explanation for why it didn’t apply for Maximum Base Rent (MBR) increases for tenants at any time, especially after the DHCR ruled in 2014 that tenants were rent controlled. The MBR and MCR both were $315.49 in 1990. And since there were not further DHCR orders increasing the MBR or MCR, the MCR remained $315.49 as of July 2, 2015. 

Akbar/Mid Kay LLC: DHCR Adm. Rev. Docket Nos. DS220033RT, DT220007RO (3/25/16) [8-pg. doc.]