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Rent Stabilized Lease - Error?

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

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Rent Stabilized Lease - Error?

Postby chalmers15 » Fri Oct 07, 2022 2:06 pm

Hi, I signed a rent stabilized lease last October in Astoria. I hadn't received letter regarding lease renewal, so I reached out last month. After finally receiving the lease renewal (around 60 days before my lease expires), I noticed an 8% increase in the rent.

I told management I was under the impression my unit was rent stabilized, to which they replied, "the original lease was an error" and "the apartment isn't and never was rent stabilized." I requested documentation from DHCR which clearly states the apt was rent stabilized until 2010. After that, the records show it became Permanently Exempt.

The stabilized lease also included a Tax Benefits Rider for J-51 (Expiration of Rent Stabilization Coverage), however, the rider does not specify the year the the building's benefits expire. That field is left blank.

Any advice?
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Re: Rent Stabilized Lease - Error?

Postby TenantNet » Fri Oct 07, 2022 5:27 pm

The rent history, i.e., the registrations that DHCR sent you, are simply the registrations the LL filed with DHCR, nothing more, and will say what the LL thinks. DHCR never checks unless a challenge is filed.

In many cases, LLs will claim the unit is deregulated (exempt) by virtue of individual apartment improvements (IAI), and 1/40th of that cost took the rent over the threshold. In 2010, that was $2,000. See https://hcr.ny.gov/system/files/documen ... 2-2020.pdf

But in many cases the work was never done, partially done, might not qualify as an IAI or the claimed costs were inflated. Actually that's what Trump was caught on. And there are a few class action lawsuits based on LL fraud.

So you need to investigate. Up until 2019 the statute of limitations was 4 years for overcharges. For post-2019 complaints, it's a 6 year look-back. But there are no limits for status. So while you might get a RS lease and a real legal rent, you would not get an overcharge award. Still, getting the status changed to RS is a good thing.

The J-51 complicates things. You should be able to inquire with NYC Dept of Finance ACRIS, HPD and maybe even DOB to see when the J-51 work was done, and expiration. DHCR might have that info as well depending on which agency administered the program for your building.

I would say, if the form is blank, the RS coverage hasn't expired, but that might be a stretch. A tenant attorney can probably be more specific.
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Re: Rent Stabilized Lease - Error?

Postby chalmers15 » Sun Oct 09, 2022 5:22 pm

Thanks for the reply.

I'll continue investigating. My only concern is that my lease expires on 10/31, so this is coming down to the wire.

Do you have any speculation as to why I was given a stabilized lease, and now they're claiming the unit has never been rent stabilized (e.g. sloppiness, deceit, their assuming I wouldn't notice)? The LL clearly signed off on everything. They know what's in the lease. The lease renewal package even includes a stabilization rider -- granted, Section A isn't filled out.

I know the J-51 situation complicates things. I tried to find information regarding my unit using this link: https://www1.nyc.gov/site/finance/benef ... s-j51.page, but nothing came up.

It's strange to me that the "date"/"estimated year" field was left blank on the J-51 rider.

I'd rather not get into a legal battle -- especially since the lease expires in a few weeks -- but it may have to come down to just that.
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Re: Rent Stabilized Lease - Error?

Postby TenantNet » Sun Oct 09, 2022 5:31 pm

If you want to keep things below the radar, and if you haven't signed a renewal least yet, you could just continue to pay the old rent. If the LL accept it, then you become a month-to-month tenant. That gives you time to continue to do research on any possible reason why they consider the place deregulated. I would also - quietly - see of other tenants had similar issues. You can also look up your address or LL (Google NYSCEF) to see if there are other cases in the building, or in other buildings owned by this LL. You could also file with DHCR, but I would do sufficient research on any IAI first. Bottom line, see what happened that caused the rent to go up
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Re: Rent Stabilized Lease - Error?

Postby chalmers15 » Sun Oct 09, 2022 6:33 pm

Thanks again! This site has been a huge help, thanks for running it.
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