Rent Increase Granted for Upgraded Cellar

(Decision submitted by Karen Schwartz-Sidrane of the Hewlitt law firm of Sidrane & Schwartz-Sidrane, LLP, attorneys for the landlord.)

Tenant complained of a rent overcharge. He claimed that landlord illegally connected the cellar to his first-floor apartment and charged an unlawful rent. Landlord argued that the apartment was deregulated either because it had created a new apartment with a first rent of $2,000, or because the cost of individual apartment improvements increased the rent to over $2,000. The DRA ruled for landlord and found the apartment was no longer rent stabilized. Tenant appealed and lost. Tenant pointed out that DOB had ruled that the cellar couldn't be used as living space. Tenant also argued that permissible improvement costs increased the legal rent to less than $2,000. But even if DOB ruled that the cellar can't be used for living purposes, it is part of the apartment. Landlord added a staircase and doors giving access to the cellar, as well as new windows, a half bathroom, laundry facilities, 450 square feet of storage space, and access to the backyard. These were improvements costing over $60,000 and warranting a 1/40th rent increase, which resulted in a new rent of over $2,000. Tenant's apartment therefore was deregulated.

Carlton Estates, Inc./Cruz: DHCR Adm. Rev. Docket Nos. YD210019RO, YE210024RT (1/20/11) [6-pg. doc.]