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rent regulation exemption

Started by Universal
over 15 years ago
Posts: 4
Member since: Jul 2010
Discussion about
I've been renting in the East Village since Nov '09. The apt was gut renovated when i moved in, but the building is in terrible condition generally and the landlord is impossible to deal with. They don't maintain the building or the security and never return calls. Most of the units are rent regulated and i know that mine was prior to my lease. A notice was sent to me indicating that my apt is... [more]
Response by SunnyD
over 15 years ago
Posts: 107
Member since: Jul 2009

You need to take a copy of your lease down to DHCR and get a copy of the Rent Registration for your apt. Luxury decontrol only takes effect when the rent exceeds $2000/mo. AND the tenant has been making more than $175,000 for more than two consecutive years. The landlord can automatically increase the rent 20% after a vacancy. And, they can add 1/40 of demonstrable upgrade costs to the rent. It would be definitely worth your while to investigate. The way the law currently stands there is a 4 yr. time limit in which a tenant can protest a rent overcharge. Good luck.

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Response by rmrmets
over 15 years ago
Posts: 93
Member since: Oct 2008

Let me get this straight - you've been living in an apt. for 9 months in a building that is "terrible", giving rent $$ to a landlord who is "impossible", and you're uncomfortable with the "security". And your answer is to pick a fight with the landlord? Dude, get your azz off the couch and look for another apt!

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Response by Riversider
over 15 years ago
Posts: 13572
Member since: Apr 2009

Only in New York would a tenant prefer to capitalize on a run down building by seeking lower rent rather than moving into an apartment with better living conditions.

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Response by alanhart
over 15 years ago
Posts: 12397
Member since: Feb 2007

Not only in NY, trollcounty ... in any place with a severe housing shortage and wildly high housing costs.

Universal, stick with that apartment and follow SunnyD's good advice. The three things I'd like to add are

1. There's a statute of limitations of two or three years, so don't drag your heels on this

2. When dealing with DHCR, keep in mind that they are a politicized pro-landlord government agency (from years of staffing manipulation under the useless Pataki administration). Try to get advice in writing, rather than orally. If they say give advice that implies that you don't have a chance of prevailiing, or they don't provide forms and instructions that are clearly the correct ones, escalate to a supervisor and/or contact the pro-tenant nonprofit http://metcouncil.net/contact.htm

3. Retain proof of submission of everything. If a letter, send certified or registered or whatever, with confirmation of receipt. If you submit something at DHCR offices, get a timestamped receipt.

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Response by Universal
over 15 years ago
Posts: 4
Member since: Jul 2010

Thanks to all for the feedback. The apt itself is fine for my needs. It's gut renovated and is a true (albeit small) 1br at around 650 sq ft. I'm content with the tradeoff of a crappy building for a larger apt in a great location for less than $2k/mo. It's not in alphabet city, but right off Astor place between 2nd & 3rd ave. To rmrmets, we all compromise in some way on NYC housing in large part because of the distortive effect of rent regulation on supply and prices. The way I see it I've been paying a premium for the past 6 years and i'm happy to capitalize on the subsidy if i can get it.

I called DHCR and they don't have a rent history for my building since the landlord hasn't updated it in the last five years, so according to them the first step is for DHCR to update the record. I did see the rule that allows a landlord to increase by 20% plus 1/40th reasonable renovation costs and in order for them to get to my rent of $1,800 the renovations would have cost in excess of $40k. I'm not a contractor, but that seems excessive for a 650 sq ft apt. They did a nice job, but $40k seems unrealistic to me.

Would it make sense to try and involve and attorney, or is the case too minor to justify an attorney's cost.

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Response by SunnyD
over 15 years ago
Posts: 107
Member since: Jul 2009

@Universal

It wouldn't hurt you to consult a tenant's attorney. Even though they are the government agency in charge of these things; DHCR cannot be taken at there word, unfortunately. @alanhart is right to advise you to really be vigilant about your documentation. I still say that you should go to DHCR's offices in person. If you have a rent-regulated apartment, there must be a record of the "legal rent." Your landlord may have been lax about reporting. But, it is required. And, having a copy of all prior registrations will allow you to see what all previous rents were for your unit. A landlord may not charge a tenant any more than the "legal rent" of a rent-stabilized apt. They can charge less. The important thing here is whether, or not, your lease/rider contain any provisions deeming your rent "preferential." And, if so, under what terms...Again, good luck.

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Response by dwell
over 15 years ago
Posts: 2341
Member since: Jul 2008

"Luxury decontrol only takes effect when the rent exceeds $2000/mo. AND the tenant has been making more than $175,000 for more than two consecutive years."

Not true. The "And" only applies if T is in occupancy.

If the apt was vacant & it was renovated (L did the 1/40th), so legal rent became $2k or more, the "$175,000 for more than two consecutive years" does not apply.

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Response by SunnyD
over 15 years ago
Posts: 107
Member since: Jul 2009

@dwell

I was speaking to the OP who IS "in occupancy." If you read my posts, you would see that I stated the increases that a LL would be entitled to as well.

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Response by jordyn
over 15 years ago
Posts: 820
Member since: Dec 2007

But the landlord is asserting that the deregulation happened during its vacancy, so I'm not sure how the $175K income threshold is relevant.

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Response by Mikev
over 15 years ago
Posts: 431
Member since: Jun 2010

The person before you did they have a large amount of preferential rent?

Also you stated your rent was $1800, does that include preferential rent? Was your rent already above $2000 and you got a $200 preferential towards the decrease?

It would seem you have a lot of things you either have not said or do not know. But i would agree that you need to probably file a claim now. The worst that happens is you find out the history and that it was entitled to be deregulated. The best is that the landlord overinflated the rent they could charge and you get treble damages.

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