Court to Set Legal Rent of Stabilized Apartment That Was Exempt for 20 Years

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Tenant's rent was $1,500 per month. Tenant claimed rent overcharge. Before tenant moved into the apartment in 2016, the apartment had been temporarily exempt from rent stabilization for over 20 years because it was occupied by prior landlord. The court ruled that it had the authority to fix the prior legal regulated rent where there was none before the base date of an overcharge complaint. Tenant didn't show a colorable claim of fraud against landlord, so it was inappropriate to use the default method to set the rent. But the court found that the $1,500 rent set by landlord was arbitrary although there was no reliable rent history to determine what the average rents should be to determine an accurate calculation of tenant's rent and whether there was an overcharge. The court ordered a hearing to determine the legal rent.

MRD Equities LLC v. St. Remcj: Index No. 50870/18, NYLJ No. 1588013439 (Civ. Ct. Kings; 4/15/20; Gonzales, J)