DHCR Sets Rent After Apartment Re-regulated

The DHCR revoked a prior order of deregulation of tenant's apartment, creating uncertainty as to what the proper rent should be for the renewal period between Sept. 1, 2009, and Aug. 31, 2011. Landlord, who had been charging tenant an unregulated rent of $2,700 per month, asked the DHCR to set the rent in order to avoid an overcharge claim. The DHCR set the legal regulated rent at $2,646 effective Sept. 1, 2011, and ruled that landlord could collect that rent prospectively only. Landlord then filed an Article 78 court appeal and argued that the legal rents set by the DHCR should be collectible from Sept. 1, 2009, the commencement date of the term of the deregulated lease entered under the terms of the DHCR's prior order. The case was sent back to the DHCR, and the DHCR ruled for landlord. The DHCR deemed a collectible lawful rent of $2,532 for the the renewal term commencing on Sept. 1, 2009, and $2,646 for the renewal term commencing Sept. 1, 2011. 

141 East 56th Street: DHCR Adm. Rev. Docket No. CR410006RP (8/27/14) [2-pg. doc.]