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Apt may be illegally deregulated, how do we proceed??

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

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Apt may be illegally deregulated, how do we proceed??

Postby bronxcheer » Sun Apr 17, 2022 1:55 pm

We moved into our apartment in fall 2021. The building is six units and was built in the 1940s. Our rent is approx 2575. The lease listed it as preferential from approx 3025. There is mention of RS in the lease but no RS rider. We found the tenant right before us. They paid approx 2200 and were there for one year. We ordered our rent registration history. It lists RS rent of approx 1175 up until fall 2018 when the registrations stop. There are some improvements: bathroom and kitchen appear renovated. But old floors and windows.

Has our apartment been illegally deregulated?

If so, we want to figure out how to proceed. Spending 20k to pursue a civil court lawsuit would be very difficult. Filing a DHCR complaint is free but we are wary of DHCR. And if we file a DHCR complaint are we entitled to stay in the apt while it is being adjudicated? As for housing court, we would rather avoid since we don't want to get blacklisted.

Any advice on how to proceed would be very appreciated.
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Re: Apt may be illegally deregulated, how do we proceed??

Postby TenantNet » Sun Apr 17, 2022 2:26 pm

For buildings with 6+ units, built prior to 1974, the apartment should be RS unless a) converted as a coop or condo or b) deregulated due to high income or high rent. Many deregulations have been illegal.

Seem you have a pref. rent rider attached to your RS lease (they don't exist for non-RS leases). Be aware that the law were changed in 2019, so the preferential rent must continue for the life of your tenancy. That means any RGB increases are applied to the the pref. rent (and not what is the "legal rent"). Also, the LL may not return to the legal rent until you move out.

Chances are the legal rent was illegally increased bu bogus IAI improvements. This is very common. But that is only to get the legal rent above the threshold (which changed every year).

First, do as much research as possible to get evidence you need.

You can consult with a tenant lawyer without having them take on the case.

If you choose to pursue a case, the opions are:

1) negotiate with the LL
2. File with DHCR (you don't need a lawyer, but it can take years and DHCR is very pro-landlord).

3. File in court. You can do this yourself. but advisable to have a lawyer. Yes, it will be expensive, so we don't recommend unless what you think you can get back is also pretty hefty.

If you file with DHCR, then that does not mean you have to vacate. However, understand the LL may commence a case in LL/tenant court if you owe back rent, or a Holdover if you create a nuisance or violate the lease. Chances are you won't have to vacate while the matter is pending.

Understand that until DHCR or a court says there was an overcharge, you should not withhold any rent (unless you have other reasons to withhold such as bad conditions). If you're dealing with COVID, look into filing with ERAP.
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