Landlord Didn't Prove It Met Requirements for Alternative Hardship Rent Increase

Landlord applied to the DHCR for rent increases based on "alternative" hardship. The DRA ruled against landlord, finding that landlord had owned the building for less than the required 36 months before filing its application.

Landlord appealed and lost. Landlord claimed that the DRA was incorrect and that it had owned the building for at least 36 months in accordance with RSC Sections 2522.4(d) and (x). The regulations required that the building be acquired by the same owner or a related entity owned by the same principal three years before the date the hardship application was filed. Here, the building was transferred from an individual to an LLC in March 2022, and that individual was the sole member of the LLC. But landlord failed to submit proof of when the individual first acquired the building. So the DRA couldn't determine whether the building was owned for 36 months before filing the alternative hardship application. 

135 W 78th, LLC: DHCR Adm. Rev. Docket No. MX410005RO (4/16/25)[2-pg. document]