What to Charge Tenant After Co-op Foreclosure

Landlord asked the DHCR what rent it could charge tenants in a rent-stabilized building that had been converted to a co-op and whose mortgage was later foreclosed upon. The DHCR noted that a court decision had ruled that all former shareholders who were current in their rent and had been previously rent-stabilized reverted to stabilization status. The DHCR had no policy or rulings on what rent to charge. But, in an opinion letter, the DHCR suggested that landlord add lawful rent guidelines increases to tenant's last stabilized rent to bring it up to a level it would have been at if guidelines increases had been taken all along.

DHCR Opin. Ltr. by Nathaniel Geller (7/13/93) [2-page document]