Landlord Proves Proper Vacancy Deregulation of Tenant's Apartment in 2013

In 2018, tenants applied to the DHCR for a ruling on their rent regulatory status. They claimed that landlord had improperly removed their apartment from rent stabilization. In response, landlord argued that tenants were the first vacancy-deregulated tenants in the apartment because the legal regulated rent surpassed the $2,500 deregulation threshold that was in effect at the time in 2013. Landlord also argued that the prior owner's incorrect listing of the apartment rent in the 2009 DHCR registration didn't bar consideration of rent history records proving that the unit was properly deregulated. Landlord submitted leases, individual apartment improvement (IAI) documentation, and an MCI rent increase order to document the apartment's actual legal rent.  The parties didn't dispute the claimed IAI costs. 

The DRA ruled against tenants, who appealed and lost. The DHCR found that landlord had proven that vacancy deregulation occurred in 2013. Tenants argued incorrectly that HSTPA applied to their application. There was sufficient proof to support the finding that the apartment had been deregulated prior to the effective date of HSTPA on June 14, 2019. This building wasn't subject to J-51 tax benefits, which may have otherwise affected the apartment's regulatory status.

Compton: DHCR Adm. Rev. Docket No. KR410002RT (11/16/23)[6-pg. document]