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Re: Help decoding 'high rent' deregulation, also RRRA97

Posted by Anna on June 12, 2000 at 20:05:53:

In Reply to: Re: Help decoding 1993 Amendment posted by MJ on June 12, 2000 at 11:08:07:

: Will wrote:

: "The only way an apartment leaves stabilization no matter what it rents at is when the landlord files for de-stabilization after the first tenant to pay over $2000 vacates . . ."

: Different MJ here from the original poster, wanting to get clarification on exactly what is required for a landlord to file for destabilization--I've read the 1993 amendment but had trouble following it.

: If you're the first person to pay $2000 or more for a rent-stabilized apartment, the apartment will remain rent-stabilized until you vacate it? I've seen other posts here about what permits a landlord to apply for destabilization that made it sound like if you pay $2000 or more, regardless of whether you are the first tenant to do so or not, then the landlord can file for destabilization.

The 1993, 1994, 1997 NY state and NYC Council laws amend the NYC and NYS RSL: they are confusing even when you read the results in the revised version of the whole laws.

There are two distinct types of 'high rent deregulation': both are sometimes referred to as 'luxury decontrol'. Both require a 'legal regulated rent' of at least $2000; both have exceptions to further complicate them.

1st: the legal rent is over $2000 in an occupied apartment: the landlord can request through DHCR that the tenant file an income verification form. If the combined household income (including unrelated roommates) is in excess of $175,000 (was $250,000 in 93) during each of the two prior tax years, the apartment gets deregulated now and forever.

2nd: the legal rent is over $2000 in an occupied apartment: when that tenant vacates, the apartment is deregulated for the next tenant and forever. The landlord must register this first dereg rent and must inform this first tenant of how the rent got over $2000. DHCR does nothing more than enter the info into their computer: they do not even investigate increases that double or triple the rent...

Note: some people (mostly landlords and their lawyers) still misinterpret the 2nd case. They claim that any vacant apartment that 'could' be rented at $2000 or more is automatically deregulated. They ignore the definition of 'legal regulated rent' which includes rent that is paid and 'properly registered'. They ignore the fact that the increases from old tenant to new tenant must be legal approved increases, i.e.: the vacancy increases and the 1/40th renovation costs increases. So they take a $500 apartment, do the repairs they withheld from the 15-year tenant, polish the floors, put in new but cheap appliances, rent for $2001 to someone new to NY and tell them it is not a stabilized apartment!

suggests that apartments could currently be deregulated before any tenant paid rent above $2000. The Courts have said NO in more than one rent-controlled case, and at least one rent-stabilized case...

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