No First Rent for New Apartment if Not Vacant

Tenant complained that landlord registered hotel-stabilized apartment at $2,250 per week. Tenant paid $182 per week. The DRA ruled for tenant and ordered landlord to amend its rent registration records. Landlord appealed and lost. Landlord had expanded tenant's apartment by taking space from the apartment next door to add a private bathroom to tenant's apartment. Landlord claimed it had created a new apartment by changing the outer walls of tenant's unit. Therefore, landlord was entitled to collect a first rent for the apartment. The DHCR ruled that landlord can register and collect a first rent from a new apartment only if it becomes vacant. Since tenant lived in the apartment before and after landlord added the space, landlord can't collect a new rent.

Thirty E. 30th St. LLC: DHCR Adm. Rev. Docket No. UE410059RO 7/24/06 [3-pg. doc.]