Dimensions Not Increased Enough to Create New Apartment

Rent-stabilized tenant complained of a rent overcharge. Landlord claimed that tenant moved into a newly created apartment and, therefore, the rent collected was the first legal rent. The DRA ruled for landlord and dismissed the case. Tenant appealed. He pointed out that landlord had only altered the apartment to increase the dimensions from 761 to 909 square feet. Tenant argued that this was insufficient to create a new apartment. The DHCR agreed with tenant. An appeals court had ruled in a prior case that a mere change in the perimeter of an apartment didn't automatically entitle a landlord to collect a first rent. The change must result in the creation of an apartment that didn't exist before. Landlord's change was insufficient to qualify. The case was sent back to the DRA for a determination of whether tenant was overcharged.

Williams: DHCR Adm. Rev. Docket No. ZB210042RT (4/11/12) [2-pg. doc.]