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Illegally deregulated apartment, but I signed a non-RS lease

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

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Illegally deregulated apartment, but I signed a non-RS lease

Postby redyeti » Sat Jul 09, 2022 3:33 am

So I've noticed that my current building meets all requirements for rent stabilization, as it was constructed prior to 1971, and it has over 6 units. I requested my rent history and it is as follows:

1984 RC 150
1985 RENT CONTROL - REG NOT REQUIRED
1986 RENT CONTROL - REG NOT REQUIRED
1987 RS-V NC 0
1988 RS 950
1989 RS 978
1990 RS 900
1991 RS 940
1992 RS 850
1993 RS 825
1994 RS 850
Continues like this until the next tenant.
2003 RS 1359.47
2004 RS 1420.65
2005 PE EXEMPT HIGH RENT VACANCY
2006 EXEMPT APARTMENT - REG NOT REQUIRED
2007 EXEMPT APARTMENT - REG NOT REQUIRED
And it says that all the way to 2022.

So, it's pretty clear to me that this is a unit with a history of rent stabilization that was for some reason exempted in 2005, I don't think that it meets the requirements for high rent exemption.

My question is, what's my next step? It's an interesting situation for me, because my lease I signed says it is (FOR APARTMENTS NOT SUBJECT TO THE RENT STABILIZATION LAW), but it is notably copyrighted in 2019. There is no mention of preferential rent anywhere as well. I've already negotiated my next lease, but have yet to sign it. My conclusion is that the HSTPA of 2019 has made my unit stabilized, but I have no idea what the preferential rent actually is because my lease has no mention of preferential rent.

I will provide as many details as needed!
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Re: Illegally deregulated apartment, but I signed a non-RS l

Postby TenantNet » Sat Jul 09, 2022 4:51 am

You're mixing up a lot of things here.

Rent Stab covers units in buildings constructed prior to 1974, not 1971. The 1971 the cutoff date for RC tenants in continuous occupancy (see below).

From DHCR:
In general, rent stabilization in New York City applies to buildings of six or more units built between February 1, 1947 and December 31, 1973. Tenants in buildings built before February 1, 1947 who moved in after June 30, 1971, are also covered by rent stabilization


and
Rent control applies to residential buildings constructed before February 1, 1947 in municipalities that have not declared an end to the postwar rental housing emergency. There are several municipalities that still have rent control in effect. These include New York City, Nassau, and Westchester counties. In New York City, rent control tenants are generally in buildings built before February 1, 1947, where the tenant is in continuous occupancy prior to July 1, 1971.


Don't get caught up in the dates.

Also, buildings themselves are neither RS nor RC. You mean the units within the buildings.

RC units are not required to be registered every year, RS are (as long as they are RS). DHCR allows landlords to lie continuously on registrations and there is no real enforcement.

But from the registration, it appears there was a vacancy in 1987 where the unit became RS.

As RS increases are a percentage, most increases are an odd number, i.e., $13.74, and not an even number like $700.00. That's often a clue the LL is doing things wrong. You can see odd numbers in 2003 and 2004.

It says the unit was exempt in 2005 for high rent vacancy, meaning they claim the rent went over $2,000 at that time ... often done by a combination of vacancy increases and apartment improvements. In practice, many are bogus.

There is generally a four-year look back limitation of 4 years, but that's for overcharge claims.

As far as we know, apartment status is different. However, there are also issues of going back that far where tenants may have to show an "indicia of fraud." You would need to do a detailed analysis of how the unit became exempt ... what the LL claims, and what happened in reality. That's difficult to do.

Before even showing that the improvements were not done (if that's the case), you need to find out on what basis the LL claimed the high rent deregulation.

The disclaimer on the lease really means nothing in our view. It's up to DHCR or the courts, not a self-serving notice on a lease renewal.

Preferential rents are a creature of RS and do not exist in unregulated tenancies. (you might have a discount, but that's not a pref. rent). Pref rents would only come into play if you can show the unit should be RS.

I would sign the next lease unless you have reasons not to do so. If you have any rights to challenge the deregulation, that would not void those rights. I would not talk to the LL about this. Keep it quiet; don't let them know you are poking around. If you know any long-term tenants, they might know what happened in the building (but again, keep it quiet).

The HSTPA would not re-regulate a unit if lawfully deregulated.

I would keep digging for more information. At some point, you may wish to consult with a tenant attorney. But it may be early as a rent history is only one piece of the puzzle.
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Re: Illegally deregulated apartment, but I signed a non-RS l

Postby redyeti » Sat Jul 09, 2022 11:36 am

What route may I go to find missing info? I’m assuming the rent history of the unit on StreetEasy never breaching the high rent deregulation threshold (as well as what I am currently paying) does not matter. I see photos of the unit on StreetEasy from 10 years ago and the only difference now is there is a new oven. I see no job filings to indicate work on the building or unit either, only work on the business below the apartment itself.

As for the basis LL claimed deregulation, is simply pointing to the previous rent of 1420 not enough? I realize there’s a lot of years to explain which probably is advantageous to the LL if it came down to an actual court claim.
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Re: Illegally deregulated apartment, but I signed a non-RS l

Postby TenantNet » Sat Jul 09, 2022 12:40 pm

Search the forum for deregulation and deregulated.

Also see https://www.brickunderground.com/blog/2 ... y_now_what

Don't even think of Streeteasy or other real estate sites. Many improvements do not require building permits.
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