Landlord Could Charge Escalator Increases While Apartment Unregulated

Tenant complained of a rent overcharge. The DRA ruled for tenant, and landlord appealed. Landlord claimed that the DRA didn't give it credit for escalator lease increases which were proper because the three-year lease granting such increases was entered into during the period of vacancy destabilization. The DHCR ruled for landlord. The three-year vacancy lease commencing on May 16, 1974, was entered into during the period of vacancy destabilization and didn't become rent-stabilized until June 30, 1974. Therefore landlord was permitted to charge yearly escalator increases while the apartment was unregulated.

Fresh Meadows Assocs.: DHCR Adm. Rev. Dckt. No. CB110085RO (3/7/96) [2-page document]