Unit That Had Been Owner-Occupied Not Subject to Fair Market Rent Appeal

Landlord sued to evict unregulated tenant. The court ruled against landlord and dismissed the case. The court also ruled that tenant could file a fair market rent appeal with the DHCR to challenge her apartment's initial rent-stabilized rent. Landlord appealed and won, in part. The apartment had been rent controlled until 1954, when prior landlord began living in the apartment. The apartment became subject to rent stabilization in 1974 but remained temporarily exempt (TE) from rent stabilzation until 2014 while it was owner-occupied. Prior landlord remained in occupancy for five and a half months after the building was sold to new landlord, but that was a mere license agreement. When prior landlord moved out in 2014 and new landlord rented the apartment to tenant at $3,600 per month in 2014, the apartment reverted from TE to rent-stabilized status. But since the apartment wasn't subject to rent control on Dec. 31, 1973, the first rent charged to tenant in 2014 wasn't subject to a fair market rent appeal. So the $3,600 rent charged to tenant became the legal regulated rent.

West 88A LLC v. Doe: Index No. 570001/19, 2019 NY Slip Op 29184 (App. T. 1 Dept.; 6/21/19; Shulman, PJ, Gonzalez, Edmead, JJ)