Hotel Rent Valid Until Building Was Reclassified

LVT Number: 7085

The DHCR reduced hotel tenants' rents because landlord didn't provide hotel services. The DHCR also reduced tenants' 1983 base rents because tenants complained that landlord had raised the rents to avoid the results of reclassification of the building from hotel stabilization to rent stabilization. Landlord appealed. The trial court ruled that the base rents set by landlord before the building's 1984 reclassification were valid. Until the reclassification, landlord was entitled to charge free market rents whenever a unit became vacant. The DHCR was wrong to reduce the base rents.

The DHCR reduced hotel tenants' rents because landlord didn't provide hotel services. The DHCR also reduced tenants' 1983 base rents because tenants complained that landlord had raised the rents to avoid the results of reclassification of the building from hotel stabilization to rent stabilization. Landlord appealed. The trial court ruled that the base rents set by landlord before the building's 1984 reclassification were valid. Until the reclassification, landlord was entitled to charge free market rents whenever a unit became vacant. The DHCR was wrong to reduce the base rents.

Matter of Ansonia Associates: NYLJ, p. 21, col. 5 (6/24/93) (App. Div. 1 Dept.; Sullivan, JP, Rosenberger, Wallach, Kupferman, JJ)