No Rent Increase for Unique and Peculiar Circumstances

Landlord asked the DHCR for building-wide rent increases based on unique and peculiar circumstances. The building was formerly subject to Mitchell-Lama regulations, and became rent stabilized when it left the Mitchell-Lama program. The DRA ruled against landlord. Since 2007, Rent Stabilization Code Section 2522.3(f)(4) provided that prior rent regulation under the Private Housing Finance Law or other state or federal law wasn't, in and of itself, a unique and peculiar circumstance. Landlord appealed and lost. In another case, an appeals court had ruled that the Rent Stabilization Code provision that the DRA relied on was valid.

Axton Owner LLC: DHCR Adm. Rev. Docket No. YH420003RO (10/14/11) [2-pg. doc.]