DHCR Correctly Applied HUD Special Guideline to Set Fair Market Rent

March 29, 2017

LVT Number: #27583

Tenant filed a fair market rent appeal. The DRA ruled for tenant and established the apartment’s initial legal regulated rent on April 1, 2009, as $1,450 per month based on HUD special guidelines. Landlord and tenant both appealed and lost. Tenant argued that the fair market rent established by HUD in October 2008 for a two-bedroom apartment was $1,318, not $1,450. But the DRA correctly relied on the Rent Guidelines Board Special Guideline #40 and properly used the NYCHA Section 8 rent of $1,450 established by HUD rather than the $1,318 rent listed on HUD’s website.

Tenant filed a fair market rent appeal. The DRA ruled for tenant and established the apartment’s initial legal regulated rent on April 1, 2009, as $1,450 per month based on HUD special guidelines. Landlord and tenant both appealed and lost. Tenant argued that the fair market rent established by HUD in October 2008 for a two-bedroom apartment was $1,318, not $1,450. But the DRA correctly relied on the Rent Guidelines Board Special Guideline #40 and properly used the NYCHA Section 8 rent of $1,450 established by HUD rather than the $1,318 rent listed on HUD’s website. Special Guideline #40 didn’t condition use of the HUD Section 8 rent on the first stabilized tenant actually receiving Section 8 assistance.

 
35 LLC/Rabidoux: DHCR Adm. Rev. Docket Nos. EN410042RO, EN410050RT (1/18/17) [4-pg. doc.]

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