Rent-Stabilized Apartment Was Vacancy Deregulated Before Tenants Moved In

Unregulated tenants complained that they were rent stabilized, that their apartment was improperly deregulated in 2011 due to landlord fraud, and that they had been overcharged. The DRA ruled against tenants, who appealed and lost. Landlord proved that the apartment was vacancy deregulated before tenants moved in. The prior rent-stabilized tenant moved out after 27 years at a rent of $625 per month. Landlord then spent $106,467 on individual apartment improvements (IAIs). Adding the allowable vacancy increase, IAI rent increase, and longevity increase to the prior rent yielded a rent of $2,604 per month. This was above the $2,500 deregulation threshold in effect at that time. Tenants were charged $2,250 in their initial deregulated lease. The rent was properly deregulated, and there was no overcharge.

Nogales/Hutmacher: DHCR Adm. Rev. Docket No. GU210032RT (6/26/19) [2-pg. doc.]