Building Operated by 7-A Administrator Covered

Tenant complained of a rent overcharge. Tenant paid $500 per month in rent. The DRA found an overcharge and reduced tenant's rent to $330. Landlord appealed, claiming that the building was being managed by a 7-A administrator and was therefore exempt from rent stabilization. Landlord claimed that the administrator must be allowed to charge the maximum rent for the building in order for it to continue to operate. The DHCR denied landlord's PAR. A rent-stabilized apartment doesn't become exempt from coverage upon the appointment of a 7-A administrator. The 7-A program was established before the rent stabilization law went into effect. So, clearly, the legislature could have expressly provided for an exemption if that was its intent. Landlord also tried to claim that the apartment was exempt because it was now owned or operated by the State of New York. But landlord still owned the building and the 7-A administrator was a private individual. So the building wasn't operated by the state.

[92 Morningside Avenue, Apt. 61: DHCR Adm. Rev. Dckt. No. FD 510244-RO (reopened) (1/19/93)]. 8-page document.