No Deregulation Without Vacancy

Landlord asked the DHCR if a rent-stabilized apartment would be deregulated under the following circumstances. Tenant rented one apartment and then rented the two adjoining apartments. Landlord permitted tenant to combine the three units, creating a new apartment, at a monthly rent greater than $2,000. Since the first rent was greater than $2,000, landlord believed that the new apartment should be destabilized. In an opinion letter, the DHCR stated that the apartment wouldn't become destabilized until a vacancy occurred. Even though a new apartment was created, tenant never moved out of the original apartment which was part of the new one. Landlord couldn't file an application for high rent/high income destabilization. If tenant's annual income was $250,000 or more for the prior two years, then and only then would the apartment be destabilized while tenant was still in occupancy.

DHCR Opin. Ltr. by Charles Goldstein (7/3/96) [2-page document]