No Timely Fair Market Rent Appeal Filed to Challenge Decontrolled Rent

Tenant complained of rent overcharge and improper deregulation of his apartment. Tenant paid $2,300 per month when he moved into the apartment in 2013. The DRA ruled against tenant, who appealed and lost. The apartment was initially registered as rent controlled in 1984. The rent-controlled tenant moved out in 2004. Landlord then negotiated a first rent of $2,000 per month with a prior tenant in September 2004. That tenant's rent exceeded the deregulation threshold in effect at the time and deregulated the apartment. In November 2004, landlord also submitted to the DHCR an Owner's Report of Vacancy Decontrol. So tenant's overcharge complaint was in effect a challenge to the initial rent following rent control. But, under Rent Stabilization Code Section 2522.3(a), no fair market rent appeal can be filed after four years from the date in 2004 that the apartment was no longer subject to rent control. Landlord's alleged failure to serve a decontrol notice on the first tenant after decontrol or to otherwise advise the first tenant of a change in the rent-regulated status of the apartment doesn't extend the four-year deadline to file a fair market rent appeal. In addition, landlord's failure to register the apartment since 1984 didn't extend the time to file a fair market rent appeal. In this case, there also were no elements of a fraudulent scheme to deregulate the apartment. 

Del Guercio: DHCR Adm. Rev. Docket No. GQ410077RT (5/8/19) [3-pg. doc.]