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Filing rent overcharge from regulated to non-regulated

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Filing rent overcharge from regulated to non-regulated

Postby jsatenant » Thu Apr 26, 2012 2:54 pm

Hi
I've looked everywhere and can't seem to find the very specific information about apartments that went from RC (not Stabilized if it matters) to market rate after a vacancy and then renovation. I'm certain those tenants are overpaying but I can't find, in one simple place, where it explains the 20% vacancy + the 1/40th of renovation costs (I think that's the basic calculation) PLUS the form to file for overcharging. I know step #1 is to call for your rent history. Then Step #2 is to file the form, but the form I find (I think it was form #89) are all specifically for rent regulated apartments, but these aren't considered regulated any more because they are $3000/month, when 2 years ago they were $200. Can I get some direction? Is it the same form and I"m looking for something that doesn't exist?

Thanks
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Postby TenantNet » Thu Apr 26, 2012 3:32 pm

You're all over the place and I can't follow you.

The apt is/was RC, RS or unregulated? Then what happened?

If it was RC, did you look at Fair Market Rent Appeals?
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Postby jsatenant » Fri Apr 27, 2012 12:10 am

Sorry. I'll try again. Rent control apartment tenant died. Rent was around $200. Landlord gut renovated and rented at market rate to students who pay around $3000. I want them to file for rent overcharge but need 2 things: the official Dhcr or hpd link to the calculation for how much they can legally raise the rent plus the form you would file to ask for a review and potential rent reduction.
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Postby TenantNet » Fri Apr 27, 2012 7:09 am

OK, that would be a Fair Market Rent Appeal, and depends if they were given the notice which -- if I remember -- if they got it they have something like 90 days to file. These days a FMRA would be rare. The rules are listed in each year's RGB orders, also as to comparables that tell DHCR how to set a new rent. Also see DHCR fact sheets.
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Postby Cranky Tenant » Fri Apr 27, 2012 9:32 am

jill wrote:Sorry. I'll try again. Rent control apartment tenant died. Rent was around $200. Landlord gut renovated and rented at market rate to students who pay around $3000. I want them to file for rent overcharge but need 2 things: the official Dhcr or hpd link to the calculation for how much they can legally raise the rent plus the form you would file to ask for a review and potential rent reduction.


My understanding is that when a Rent Controlled tenant dies the apartment comes out of Rent Control and the landlord can charge whatever the market will bear.

Generally speaking landlords do nothing for Rent Controlled tenants so they'll renovate at that point to maximize the new rent. Even so, the rent is governed by the market NOT by Individual Apartment Improvements.

It used to be that these apartments then became subject to Rent Stabilization but now that the market value has surpassed the $2500 threshold I'd imagine a Rent Contolled apartment could easily become decontrolled in a single vacancy.

You didn't mention where the apartment is located or how big it is but there's very little available in Manhattan for under $2500 or so. As Tenant.Net suggested, your friends could possibly file a Fair Market Rent Appeal but $3000/month could be the current market value.
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Postby jsatenant » Sat Apr 28, 2012 12:13 am

Hmmm I was under the impression that they could only raise the rent 20% plus 1/40th the cost of renovations and if that calculation was more than $2000 (or something) then they could charge market rate. Or is that only for RS apartments and doesn't apply to RC?
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Postby Cranky Tenant » Sun Apr 29, 2012 2:29 pm

I'm a cranky tenant NOT a cranky lawyer.
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Postby ronin » Sun May 06, 2012 1:37 am

Also, just make sure that there was no succession at any point. If there was succession the apartment should have become stabilized for a short period which would have set limits. But if it's exactly as you said, then cranky is on the money.
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Postby Cranky Tenant » Sun May 06, 2012 11:03 am

ronin wrote:Also, just make sure that there was no succession at any point. If there was succession the apartment should have become stabilized for a short period which would have set limits. But if it's exactly as you said, then cranky is on the money.


Would succession bring the apartment out of rent control? I was under the impression that with succession, family members continue under the same lease and the only major difference is the successor becomes the tenant of record.

http://www.housingnyc.com/html/resource ... 30.html#e4
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Postby ronin » Mon May 07, 2012 10:07 pm

I recall it being that they become Rent Stabilized upon succession, but I could be confusing it or doing something outdated. Tenant should know for sure.
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