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"RS" on Rent History, But Treated as Deregulated

NYC Rent Regulation: Rent Control/Rent Stabilized, DHCR Practice/Procedures

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"RS" on Rent History, But Treated as Deregulated

Postby Promezclan » Sat Jan 15, 2022 11:29 am

After a recent rent increase notice, I requested my rent history to see if the apartment was rent stabilized. What I found was a little confusing. In the early years, the rent was treated as stabilized, with small increases and non-round numbers. But then in 2008, there was a one-year vacancy, then a sudden increase from 1600-something to the nice round number of 2500. Soon after, the rent drops back down to 2000. This looks a lot like the classic renovation deregulation, and 2500 is over the Deregulation Rent Threshold. And indeed, after that, the apartment is treated as deregulated. Rent numbers are nice and round, and are raised by up to $200 at once. However, I'll note that from 2011 to 2020, the rent never reaches the new, higher DRT again.

So far, it seems fairly straightforward. The rent was deregulated via renovation, and possibly even a fairly legitimate one, since the apartment was ostensibly vacant for a year, and they went well over the necessary threshold. The only complicating factor is that from 2008 all the way to 2019, the "Apt Stat" in the Rent History continues to say "RS" and is regularly filed every year. It is not until 2020 that "REG NOT FOUND FOR SUBJECT PREMISES" is shown.

So my question is whether this "RS" in the Apt Stat in the Rent History has any meaning, or it is something purely clerical? Could it be that for whatever reason, the apartment was never officially deregulated at that time? Would it even matter now?
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Re: "RS" on Rent History, But Treated as Deregulated

Postby TenantNet » Sat Jan 15, 2022 12:17 pm

First, when was the building constructed (approx. date). Go here for a lot of information about any building in NYC: https://zola.planning.nyc.gov/about/

Look for the block and lot number (BBL Lookup). See if the building is receiving any special tax benefits such as Inclusionary Housing or 421-a.

When did you take occupancy? Were you in occupancy when the jump from 1600 occurred? Or was that between two tenants (one leaving, a new one coming in)?

Any indication of why the rent dropped, i.e., a preferential rent?

If there was a high rent deregulation, you have to find out when that was as the threshold changed at various times, from $2,000 up to above $2,700.

In out view, nothing about deregulation is straightforward.

The status listing "RS" does not mean it is legally RS. And the LL submitting registrations with RS is not determinative. It could just be a typo. Remember though, the history is made up of yearly registrations as submitted by the LL. While they are important, there might be other things going on and you will need to be a sleuth.

Also remember that while there is a 4-year statue of limitations (which will likely increase to 6 years at some point) on looking back for overcharge issues, there is no limit on RS status. You can go back until 1984 to determine if the unit is still legally stabilized.

Part of the problem is that DHCR never had an ironclad method to determine what constitutes a deregulation, i.e., what a LL must do and the ramifications if they don't do things. They are supposed to submit a form, but DHCR really doesn't stick to that.
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Re: "RS" on Rent History, But Treated as Deregulated

Postby Landlords Boy » Fri Jan 21, 2022 10:02 am

Promezclan wrote:...So far, it seems fairly straightforward. The rent was deregulated via renovation...The only complicating factor is that from 2008 all the way to 2019, the "Apt Stat" in the Rent History continues to say "RS" and is regularly filed every year. It is not until 2020 that "REG NOT FOUND FOR SUBJECT PREMISES" is shown.
So my question is whether this "RS" in the Apt Stat in the Rent History has any meaning, or it is something purely clerical? Could it be that for whatever reason, the apartment was never officially deregulated at that time? Would it even matter now?

Not sure. A decade ago I had a case where I deregulated a unit and it still showed up as regulated when a tenant inquired. DHCR made a clerical error or had a bug in their system. Just the sort of thing that annoys both tenants and landlords.
After that DHCR told me to use the on-line forms to do such filings rather than paper.
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