Application of Legal Rent Increases Proves Apartment Was Deregulated

Landlord sued to evict vacancy-deregulated tenant. Tenant claimed rent overcharge. The court denied landlord's request to decide the case in its favor without a trial, based on rent history records. The court ruled against landlord and said it would decide tenant's overcharge claim.

Landlord appealed and won. Tenant moved into the apartment in 2009, and the building's J-51 tax benefits had expired in 2008. Landlord last registered the apartment as rent stabilized in 1998 at $1,532.50. By applying all applicable guideline increases as well as three vacancy increases that occurred between 1998 and 2008, the legal rent easily exceeded the $2,000 deregulation threshold in effect when tenant moved in. The lower court had ruled that the legal rent was frozen at $1,532 due to landlord's failure to file annual rent registrations after 1998. But, as in the 2017 appellate court decision in Park v. DHCR, landlord had discontinued rent registrations based on its justifiable belief, before the 2009 Roberts court decision and 2011 Gersten court decision, that such filings were unnecessary. 

BLDG Management Co., Inc. v. Orelli: 59 Misc.3d 148(A), 2018 NY Slip Op 50811(U) (App. T. 1 Dept.; 6/6/18; Shulman, PJ, Gonzalez, Edmead, JJ)