Unit with Market Rent of $2,800 Still Covered

LVT Number: 12336

Landlord asked the DHCR if a rent-controlled apartment which became vacant qualified for high-rent vacancy deregulation. The Maximum Base Rent (MBR) when tenant moved out was $725. Landlord received an MCI increase from the DHCR for $41 and an individual apartment improvement increase of $15. Landlord said it planned to spend $20,000 on apartment renovations and that the market rent for the apartment was $2,800 per month. In an opinion letter, the DHCR said that the apartment wouldn't be deregulated but would become subject to rent stabilization.

Landlord asked the DHCR if a rent-controlled apartment which became vacant qualified for high-rent vacancy deregulation. The Maximum Base Rent (MBR) when tenant moved out was $725. Landlord received an MCI increase from the DHCR for $41 and an individual apartment improvement increase of $15. Landlord said it planned to spend $20,000 on apartment renovations and that the market rent for the apartment was $2,800 per month. In an opinion letter, the DHCR said that the apartment wouldn't be deregulated but would become subject to rent stabilization. Landlord could charge the market rent of $2,800 but must still give tenant an initial rent registration (RR-1) form advising tenant that he could file a fair market rent appeal. The total cost of the improvements made to the apartment in question didn't appear to bring the new rent up over $2,000, so if the rent was set at $2,800 it was subject to challenge.

DHCR Opin. Ltr. by Charles Goldstein (7/22/97) [2-page document]

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