Posted by Anna on December 27, 1999 at 23:11:47:
In Reply to: Rent rollback -- to what? posted by Brenda on December 27, 1999 at 21:32:56:
: I have another question on "preferential rent," only mine is different.
: When I first rented my (NYC rent stabilized) apartment back in the early Nineties, the landlord
: didnt raise the rent because the market was bad, etc. So my rent was
: less than the "legal regulated rent."
: Well, I just got a rent reduction order for decreased services. The rent
: is rolled back to the legal regulated rent as of a few years ago. But the
: question I have is, does the rent get rolled back to the sum I actually paid,
: or the (slightly higher) "legal regulated rent"? This is a retroactive order,
: so it actually works out to a couple of thousand bucks difference.
: I posed this question to the DHCR hotline. The guy checked with his supervisor and called
: back to say that my rent gets rolled back to the ACTUAL rent, not the legal
: regulated rent. He couldnt explain why.
: Is the DHCR guy right? I tried researching this question on the website but
: couldnt find anything. I'd like to accept his answer but I have a feeling he
: is wrong.
The DHCR guy is right: it gets rolled back to the rent you paid. The reason is that, no matter what the landlord could have charged you when you first moved in, he can only add the RGB increases to the rent you actually paid. There are really two 'legal' rents for your apt: the rent you pay and the higher one. After you move out, he can charge the next person rent based on the higher 'legal' rent, IF he registered the apt with both 'legal' rents for all years. A rent reduction usually rolls back to only the rent prior to the last renewal increase, which is a rent amount you actually paid.
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