DHCR Can Decide Former Tenant's Complaint of Improper Apartment Deregulation

In October 2015, former tenant applied to the DHCR for a determination of whether his apartment had been improperly deregulated before he moved in. Tenant lived in the unit from February 2010, to September 2014. In response, landlord claimed that individual apartment improvements (IAIs) were made after the prior tenant moved out and that the apartment was properly vacancy-deregulated before tenant moved in. Landlord also argued that the DHCR couldn't consider the claim of a tenant who had moved out of the apartment.

The DRA ruled for the former tenant, finding that the apartment was rent stabilized because landlord proved only $28,500 of the claimed $140,000 IAI costs. So the legal rent didn't exceed the vacancy deregulation threshold at the time former tenant moved in.

Landlord appealed and lost. Landlord argued incorrectly that the DHCR had no jurisdiction to rule on a former tenant's complaint. And the DHCR can properly look past the four-year lookback period to determine the rent regulatory status of an apartment. This is distinct from the DHCR's authority to rule on rent overcharge complaints. Landlord mistakenly argued that the DRA's ruling violated the Court of Appeals decision in Regina Metro Co. LLC v. DHCR. The DHCR could properly look at rental events that occurred before tenant moved into the unit in February 2010 to determine whether the unit was subject to rent regulation. It didn't matter how long ago this occurred. Landlords were required to retain proof of IAIs, and landlord's proof was insufficient to support the claimed deregulation.

180 Union Company LLC: DHCR Adm. Rev. Docket No. KM210023RO (6/3/25)[6-pg. document]