Tax Exemption Didn't Result in Rent Stabilization Coverage

Tenant claimed that she was rent stabilized and complained that landlord refused to renew her lease. The DHCR ruled against tenant, who then filed an Article 78 appeal. The DHCR agreed to take the case back for reconsideration, and then ruled against tenant again. The building was subject to a Real Property Tax Law Section 420-c tax exemption. Under this exemption, landlord made three separate regulatory agreements: with the Housing Trust Fund Corporation, with the DHCR, and with HPD. While landlord’s agreement with the DHCR imposed rent restrictions, it didn’t subject the building to rent stabilization. The fact that landlord registered the apartment with the DHCR as rent stabilized was an error and didn’t subject the building to rent stabilization. Since the building wasn’t rent stabilized, the DHCR had no jurisdiction to rule on tenant’s complaint.

Scott: DHCR Adm. Rev. Docket No. DX410004RP (2/17/16) [2-pg. doc.]