Two Apartments Treated as One for High-Rent Deregulation

Landlord applied for high-rent/high-income deregulation of tenant's two apartments. Tenant admitted that his income was above the deregulation threshold, but he argued that his rents were not above $2,000 per month. Tenant occupied two apartments in the building. One was rent controlled, and the other was rent stabilized. Each apartment had a monthly rent that was less than $2,000 per month. The DRA ruled for landlord. Tenant appealed and lost. For the purposes of high-rent/high-income deregulation, what mattered was how physically connected the two apartments were. An inspection showed that a wall between the apartments had been removed. Tenant lived in the two apartments as one unit. The combined rents of the two apartments were greater than $2,000 per month. Therefore, landlord was entitled to high-rent deregulation.

Kramer: DHCR Adm. Rev. Docket No. UF420072RT (11/28/06) [4-pg. doc.]