No Rent Overcharge Where Tenant Agreed to Transfer to Unregulated Apartment

Tenant complained to the DHCR in 2023 of rent overcharge resulting from unlawful deregulation of his apartment. Tenant had moved into the apartment in 2020 under an unregulated lease with a monthly rent of $2,150. The DRA ruled against tenant, finding that the apartment was vacancy deregulated in 2013 when the rent level surpassed the deregulation threshold of $2,500 per month.

Tenant appealed and lost. Tenant claimed that he previously lived in Apt. 4B, which was rent stabilized. He later transferred to Apt. 4K and argued that his rent-stabilized status should have followed him to the new apartment. But in a separate housing court proceeding, the court denied tenant's same claim. The DRA order in dispute here was issued six months later. It was unclear whether the court decision precluded the DRA from deciding in tenant's favor concerning the rent regulation status. But landlord submitted lease records showing that the legal rent for Apt. 4K was $2,374.69 per month. When the next tenant moved into the unit in 2012, the rent rose to an amount over the $2,500 deregulation threshold then in effect, and that tenant received a deregulation notice. In this case, the tenant showed no proof that the deregulation in 2012 was unlawful or fraudulent.

Proano: DHCR Adm. Rev. Docket No. MU410022RT (2/25/25)[3-pg. document]