Landlord Must Register Deregulated Apartment

Facts: Landlord sued to evict tenant for nonpayment of rent. Tenant claimed a rent overcharge. Tenant was the first tenant to occupy the apartment after rent control. Landlord charged tenant $3,100 per month. Since the monthly rent was over $2,000, landlord claimed the apartment was exempt from rent stabilization. But landlord never sent tenant an initial rent registration (RR-1) form or filed that form with the DHCR. Tenant claimed that the legal rent therefore was the prior rent- controlled rent. Court: Tenant wins. In a building otherwise subject to rent stabilization, any apartment becomes subject to stabilization upon vacancy decontrol. Landlord is required to send the RR-1 form to tenant and file that form with the DHCR. The first rent is subject to a fair market rent appeal, whether it's more or less than $2,000. Landlord can't simply deregulate the apartment by setting the first rent after decontrol at an amount greater than $2,000. And until landlord files an RR-1 form, the legal rent for the apartment is the last rent-controlled rent.

Townan Realty Co. v. Posner: NYLJ, p. 22, col. 4 (9/9/98) (Civ. Ct. NY; Martino, J)