HPD Regulatory Agreement Didn't Exempt Building from Rent Stabilization

Tenant complained to the DHCR of rent overcharge. Landlord claimed that the apartment wasn't rent stabilized because the building's mortgage Subordination Agreement and Regulatory Agreement with the City of New York and HPD conferred rent stabilization only on studio and one-bedroom units rented to persons with eligible incomes. Tenant's apartment was a two-bedroom unit. The DRA ruled for tenant and ordered landlord to refund $23,360, including interest and triple damages. Landlord appealed and lost. The DRA properly determined that the apartment was rent stabilized. The Regulatory Agreement in question didn't exempt the apartment from rent regulation. The DRA also properly awarded triple damages. None of the three exceptions to a finding of willfulness were involved in this case. The building wasn't purchased in bankruptcy, landlord didn't reduce tenant's rent in its initial response to the complaint, and there was no technical error. 

Chung: DHCR Adm. Rev. Docket No. JR210022RO (11/3/21)[3-pg. document]