Tenants in Apartments Rented to Homeless Shelter Organization Not Rent Stabilized

Tenant complained of a reduction in services. The DRA ruled for tenant and reduced his rent. Landlord appealed and argued that tenant wasn't subject to rent stabilization. Landlord rented the apartment to the NYC Department of Homeless Services (DHS), which used the apartment to provide temporary shelter to homeless families. Landlord showed that DHS had a transitional cluster lease agreement with We Care Inc., a contractor DHS retained to provide temporary shelter to the homeless.

The DHCR ruled for landlord. A court had ruled in November 2018 that apartments, like the apartment in question, that are rented to an organization to provide temporary housing to homeless families through DHS, are not rent regulated and that homeless families in such housing weren't rent stabilized. The rent reduction order was revoked.

Wilson Han Assoc Inc.: DHCR Adm. Rev. Docket No. FP210044RO (12/7/18) [3-pg. doc.]