Apartment Was Deregulated Due to Substantial Rehab

Tenant complained of rent overcharge. He claimed that his apartment was illegally converted and that the second bedroom didn’t have egress windows. Tenant moved into the apartment in October 2013 under an unregulated lease and paid $2,550 per month in rent. Landlord claimed that the building was substantially rehabilitated in 2013 before tenant moved in and therefore was unregulated. Landlord obtained J-51 tax benefits effective June 10, 2015. The DRA found that the apartment became rent stabilized at that point, but there was no overcharge in the initial rent set before that date. The DRA ruled against tenant and dismissed the complaint. Tenant appealed and lost. A prior DHCR decision confirmed that a substantial rehabilitation was completed in 2013 and that the apartment became deregulated just before tenant moved in. The rent stabilization status of the apartment that took effect on June 10, 2015, wasn’t retroactive. Tenant also moved out of the apartment in May 2015 and never paid more than $2,550 in rent. 

Oladunni: DHCR Adm. Rev. Docket No. EO210028RT (9/7/16) [4-pg. doc.]