Apartment Already Deregulated When Tenant Moved In

LVT Number: #30913

Tenant sued landlord for rent overcharge in connection with two apartments in the same building. Tenant had lived in  Apt. 6 from 2007 through April 2014, then moved into Apt. 4 under a written agreement with prior landlord. Landlord claimed that any overcharge claim for tenant's prior apartment had been resolved, and that tenant's current apartment had been properly deregulated for high-rent vacancy.

Tenant sued landlord for rent overcharge in connection with two apartments in the same building. Tenant had lived in  Apt. 6 from 2007 through April 2014, then moved into Apt. 4 under a written agreement with prior landlord. Landlord claimed that any overcharge claim for tenant's prior apartment had been resolved, and that tenant's current apartment had been properly deregulated for high-rent vacancy.

In 2018, the court ruled that the rent-stabilized status of Apt. 6 didn't transfer to Apt. 4 when tenant changed apartments. In June 2020, the court applied a four-year lookback to the claim for Apt. 6 in light of the April 2020 Regina Metropolitan decision and found that landlord's payment of $45,709 covered that overcharge. There was insufficient proof of any fraud by landlord with respect to Apt. 6.

As to Apt. 4, the court now found that, at least through June 30, 2007, all apartments in the building should've been rent stabilized as the building was receiving J-51 tax benefits. The fact that Apt. 4 was apparently improperly deregulated during the J-51 period didn't, in the absence of fraud, expand the lookback date of March 24, 2012, for tenant. The rent on the four-year lookback date for Apt. 4 was already at least $2,000 per month. When Apt. 4 became vacant on Feb. 1, 2014, and was offered to tenant, it had already been at market rent for several years. And tenant moved from Apt. 6 to Apt. 4 upon mutual consent and agreement between tenant and landlord.

There was insufficient proof of any fraud by landlord. Tenant was entitled to attorney's fees in connection with the overcharge found for Apt. 6 only.

McDonald v. Jbam Trg Spring, LLC: Index No. 152553/2016, 2020 NY Slip Op 32498(U)(Sup. Ct. NY; 7/29/20; Marin, J)