Rent history confusion

[HardKnocks]

I recently received rent history from DHCR for my RS unit and I’m confused.

To start, I moved in last summer (2015). Using slightly fudged numbers:

Legal rent: $2,534
Previous legal rent: $2,100
Preferential rent: $1,700
Vacancy increase: $407
IAI increase $42

Before I moved in, they replaced the kitchen appliances (they claimed cabinets too, but not true… cabinets are old and scuffed up) and did some electrical work. After cost of parts and labor, the total IAI rent increase (1/60th) was listed as $34 for the kitchen and $8 for the electrical work..

Now the legal rent is over $2,500. Here’s where the confusion comes in. According to the rent history, the legal rent in 2007 was $900. Then a new person moved in in 2008, and it jumped up to $1,500… (hard to imagine they did a bunch of improvements in 2007 and then did so again in 2015). The legal rent jumps again from $1,500 in 2008 to the aforementioned $2,100 in 2013.

Other notes: The same tenant lived in the unit from 2000 (legal rent $800) to 2007 (legal rent $900… she signed some 2-year leases). Next tenant from 2008 (legal rent $1,500) to 2012 (legal rent $1,700). Tenant before me from 2013 (legal rent $2,100) to 2015. Another note: Starting in 2013, a preferential rent of $1,500 is listed for the tenant before me, who signed a 2-year lease. He paid $1,500 in 2013 and 2014, and my rent is $1,700.

So how did the legal rent jump from $900 to over $2,500 in 8 years? Does that sound legally possible?

Thanks for any direction you can give. Although I doubt there's anything I can do at this stage, since the chicanery started over 4 years ago.

[TenantNet]

Keep in mind that last year the rent laws were changed so that the deregulation trigger is now $2700. Previously it was $2500. So if the legal rent was $2500 or above before (I think it was effective around 6/30/15), then the LL might have an argument to deregulate the unit.

Also you should read up on how DHCR handles preferential rents. If the LL did the right things, he can drop the pref. rent and start charging you the legal rent.

And you know you can challenge all of these figures going back 4 years (but if you do so the LL might retaliate by dropping the pref. rent).

The IAI is not a lot, but if the work wasn't done, not done well, or previously done, you can challenge that.

Does the LL explain how he got a $407 vacancy increase? That seems improper. You should go through all the increases going back to 1984 and see how the rents increases, looking closely at the larger jumps.

You should watch an ongoing court case "Altman" as it might impact some of the rent increases if upheld. It's going through the appeal stages. We've discussed it on this forum. Also look at the "Grimm" case regarding going past the 4 years limit. Just search for Altman or Grimm.

[HardKnocks]

Thanks for the response!! Sorry for delay in follow up, as I was on vacation.

It's the large jumps in just a few years that have me suspicious. How does legal rent go from $900 to $2,500+ in 8 years?

Lease says vacancy increase of 20% of previous legal rent. Rent history also shows the apartment's status as vacant at end June 2015, though I signed my lease 2 months earlier.

Also, the lease says this unit leaves RS in 2020.

The whole thing just seems shady to me. BTW, this is one of the largest landlords in the city.

[TenantNet]

We can't begin to opine without seeing all the documents and doing a thorough analysis (no, don't send it to us). But someone will have to analyze what the LL's story is, then you have to see if it is legal. Depending on where you live, there are occasional tenant clinics around town where help can be gotten. Why does the LL claim the unit will leave RS in 2020? Many say that and it often turns out not to be legal either.

[HardKnocks]

There's a rider saying the tax benefits expire in 2020 and the unit will leave rent stabilization at that time... and they will not be obligated to offer a renewal lease.

Of course I wouldn't send the documents to you! I was just wondering if you thought it was feasible that the legal rent could legitimately grow by that much in such a short space of time. This is the first time I've ever requested rent history, and it just didn't look right to me.

[TenantNet]

Most likely then the LL is claiming the unit and/or building is receiving a tax abatement either under 421(a) or J-51 programs.

Many LLs scam tenants with this sort of situation. While there may be legitimate end of RS status in some cases, in some cases LLs are required to maintain RS status. To get an idea, google "421-a propublica" without the quotes. Also google J-51 and Stuytown.

I would have the entire history looked over by someone who knows how these programs work.

As for the rent increasing, again, we can't say for certain without looking at the history, but it does seem much higher than normal.