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Re: Deregulation, not a process

Posted by MJ on June 22, 2000 at 09:03:20:

In Reply to: Re: re: Deregulation: not a process, a piece of paper posted by No One on June 21, 2000 at 20:03:47:

: If it was controlled, the first rent is a 'fair market rent' (look that upin the decisions: that's where the most important decision is) AND IS STABILIZED. The next tenant will automatically be deregulated IF the landlord registers both legally.

Many thanks for the help.

I have looked at the summaries of a couple of decisions on this front: 101 West 70th Street Associates v. DHCR (28 February 2000) and Townan Realty Co. v. Posner (9 September 1998), and one question is whether these cases rule just that an apartment cannot _automatically_ go from rent controlled to completely deregulated because the new rent after the rent controlled tenant vacated would be above $2000 or whether they also imply that a newly decontrolled apartment has to be rent stabilized before it can be deregulated, in which case then it would seem that it wouldn't matter what the rent was that the first tenant paid; the apartment would only be deregulated after that tenant vacated even if that tenant was paying $5000 a month.

I got the sense from reading the summaries that only if the tenant could show that the initial registered rent is illegal and should not have been above $2000 in the first place would the apartment then be stabilized for the duration of his/her occupancy, since according to what I have been able to glean of RRRA 1997, if the legal regulated rent equals or exceeds $2000, then the apartment is deregulated. In Townan the court noted that the $3100 rent the tenant agreed to pay for a newly decontrolled apartment was not the legal regulated rent until the fair market rent appeal process had been accomplished and showed that that rent was indeed legal. But I see that you call the first rent paid on a newly decontrolled apartment a fair market rent: so there is a difference between "fair market rent" and "legal regulated rent"? And the first rent paid after ana apartment is decontrolled cannot be a legal regulated rent, but is rather something that can only be established subsequent to the establishment of an initial fair market rent?

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