No Overcharge Where Base Rent Set by HPD After Building's Exit from Mitchell-Lama

LVT Number: #30403

Tenant complained of rent overcharge. The DRA ruled for tenant. Landlord appealed and won. Landlord showed that the building previously was subject to the Mitchell-Lama program but exited that program in early 2016. The building then transitioned to rent stabilization in Jan. 2016. The apartment was initially registered with the DHCR at that time. Under DHCR Advisory Opinion 91-2 (AO 91-2) and Title 28 of the Rules of NYC, the rules for setting a legal rent following Mitchell-Lama status are set forth. Tenant's monthly rent was $1,444.52 when the building exited Mitchell-Lama.

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Atlantic Towers Assoc LP: DHCR Adm. Rev. Docket No. GV210038RO (8/5/19) [5-pg. doc.]