Landlord Proves Lawful High-Rent Vacancy Deregulation of Tenant's Apartment

Tenant complained to the DHCR of rent overcharge and improper deregulation of her apartment. The DRA ruled against tenant, finding that the apartment had been legally deregulated.

Tenant appealed and lost. Tenant claimed a fraudulent rent increase based on individual apartment improvements (IAIs) resulted in an illegal deregulation before tenant moved in on Oct. 1, 2007. The prior tenant paid rent at $792 per month. But the DHCR affirmed that landlord proved IAI costs of $41,751 and legally set tenant's initial monthly rent at $2,500. This was above the vacancy deregulation threshold in effect at the time. There was no colorable claim of fraud to deregulate the unit. Landlord documented its pre-base date IAIs. Among other things, landlord showed that the building super who performed the IAIs in 2007 was paid for that work separately and outside the scope of his employment as the super.

Wise: DHCR Adm. Rev. Docket No. IW410025RT (11/29/21)[4-pg. document]