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DHCR Denied

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

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DHCR Denied

Postby brooklynRenter123 » Thu May 18, 2023 10:51 pm

I moved into an apartment in July 2019 taking over another couple's lease for $2400/mo, the lease did not mention stabilization. In 2020 we renewed for $2400, and in 2021 we renewed for $2200 because rents were going down for a brief, glorious moment. In July 2022 it was moved back to $2400/mo.

In late July we received a packet in the mail from DHCR informing us that the LL's adminstrative appeal (PAR) against an order issued on January 27, 2022 which denied the owner's application for exemption from rent reguilation by virtue of substantial rehabilitation. Timeline-
2012- Hurricane Sandy
2013- Building burns down in a fire.
2014-2018 Substantial Rehab
2018- I know for a fact someone was living here (actual rent paid not listed), the ownership changes hands
2019- I move in
2020/1 - Owner files for exemption from regulation based on paying 800k in renovations.
2021/3- Agency requests checks providing proof of payment
2021/6- Agency requests checks again
2021/8- Current Owner's counsel asserts that work was paid for by previous owner and he's now dead, the current owner attempted to find proof of payment from the estate. The spouse says the records were destroyed in a flood from hurricane sandy. Rental Authority points out sandy happened before the fire, 6 years before renovations were complete.
2022/1- Rent Authority Terminates proceedings, there is no evidence or proof of payment.
2022/3- First appeal or PAR is rejected, I have a docket number.
2022/7- The next PAR with a different docket number is final. Determination status is "Order Issued" and I get letters in the mail basically saying its rent stabilized.
2023/4- LL tells me my rent is going up to 2600/mo or I can leave (basically continues acting as though it is not stabilized). I respond asking why I got a letter in the mail, why it is not stabilized, explain what they're doing. They respond much delayed and say that they have another appeal pending. In the mean time they send over a proper rent-stabilized lease with 1 and 2 year options, with 2400/mo as the base + 3.5% increase. I believe based on conversations with other tenants that they are not aware the building is stabilized.

This new docket number is listed as "Final Review".

I got the rent history. It seems normal until 2007, then it is listed as high rent vacancy exempt. 2008 exempt. Then 2009 to 2018 were all filed as Rent Stabilized-Vacant with legal regulated rent numbers as the maximum. They are all filed at the same time in 2018 when the building changed hands. No actual rents paid or leases. The building was definitely not vacant that whole time. There certainly were leases before the fire evidenced by the tenants being required to vacate, and at least one I can prove before me. Then 2019 to 22 is listed as not regulated.

This all seems super suspicious to me. Can the landlord continue appealing the decision? Why are they allowed so many separate reviews? In the meantime, the property should be assumed to be rent stabilized, right? When I got my rent down to 2200 in 2021, shouldn't that have set the legal stabilized rent back down to 2200? This would cap 2022 rent at 1.5%, and I'd be owed overcharges.

Is any of this 'willful' because it seems like they are intentionally not notifying tenants of their rights. Or do they not have to do that until they've exhausted every single appeal? I would think that after losing the initial request in Jan 2022 they would be obligated to give me a stabilized lease in July 2022. Should I demand a lower rent now or wait to see how the appeal turns out? Or maybe file a DHCR complaint?

Thanks in advance for any advice anyone can give. I feel like I've been reading tenant laws for a week straight.
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Re: DHCR Denied

Postby TenantNet » Thu May 18, 2023 11:32 pm

Sounds like the PAR says you are RS. But please send us a PDF of the PAR decision (all pages, in .PDF, not .jpg format). Please post using private mail (use the PM button). Do not post it on the public forum. Or email to us at tenant@tenant.net.

Be aware that if DHCR denied the LL's administrative appeal, they can appeal further in the courts using an Article 78 appeal. You most likely would have the right to intervene. Also the tenant who filed the complaint also would have a right to intervene.
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