Is it rent stabilized and worth escalating?

[talkative]

*My roommate and I are currently subleasing an apartment that we pay $3100/month for. We moved in a month ago, in a few days. Since the beginning, I thought that maybe the unit was rent stabilized, because the building fit the criteria *(built before 1974, 12 units). I know it’s dependent on unit, so I asked my subleasor. They answered that they weren’t sure, but didn’t think so.

*Edited to include that it’s in Manhattan.

Recently, I started investigating again and requested its rental history from the DHCR.

Its history is much more comprehensive than a lot of others seem to be, so I was able to do a lot of digging.

Throughout its entire history, it had maintained RS-status. Seemingly, until now. From its initial registration in 1984, right up until 2021. Even after its period of “Reg. not found for subject premises” from 2007-2012, RS resumed once it was rented again in 2013.

For 2021, its exact presentation is as follows: “RS 11/09/2022, legal regulated rent 1,108.89, lease beginning and ending 04/01/2021 — 04/30/2022.” There is no record of what the preferential and actual paid rent was.

For 2022-2023, it says “Reg. not found…” My subleasor informed me that they haven’t been living there for about a year and a half now, so they’ve been subleasing since then. They presumably signed a two year lease because my sublease duration is from Sept. 1st — April 2024. It’s said in my sublease that the terms listed here are the ones listed in the original lease agreement.

I don’t fully understand how the tax benefits work, though I know my building probably doesn’t fall under 421-A because it was built in 1920, according to Streeteasy and whoownswhat. I may have missed it, but I couldn’t find the construction date in the DOB.

I also think J-51 applies to renovated apartments? If so, it also doesn’t apply here, because I believe “vac/lease imprvmnt” means it was renovated. This appears in 1998 and nowhere else in its history.

This would mean it was stabilized through other means, which I assume is just due to its age & size.

How was the unit deregulated? I’m not sure how deregulation works post-2019, only that on paper, it fits the qualifiers for rent stabilization as far as I can tell.

I have had no contact with the actual LL (or management company, not sure), only my subleasor.

It says nowhere in my sublease that it’s rent stabilized. My subleasor left some furniture so it was partially furnished, and I think I read subleasors can charge an extra 10% for that. However, I’m not certain on how that works.

Am I right to be suspicious, or is there something I’m missing and it’s been destabilized, and legally?

[TenantNet]

Sorry for the delay in responding.

You posted in the RS section, so normally we would assume the unit is RS. Apparently that's a suspicion on your part.

But you say you are subleasing, so you are not the prime tenants and as such, even if the unit is RS, your rights are not as broad as the prime tenant.

The original lease and perhaps other documents might give some indication, but are not always absolute. You said you've asked for the rent history.

If you can get the history, it will likely fill in some gaps, but again, it's not always definitive. DHCR has a way of just accepting without explanation statements from LLs that they "made a mistake."

As you know, high-rent deregulation was banished in 2019. That might restore the status, but overcharges are usually limited to a 4 year lookback. It's not entirely clear from the muddled history if the LL thinks the unit is RS or not. Look at the last lease renewal. Again, it's not definitive, but part of a puzzle.

There are still a few loopholes to deregulate, one being Frankensteining where 2 or more units are combined into a new larger unit. There is a bill pending in Albany that would do away with this, but the Governor might not sign it.

As you may know, Preferential Rent rules were modified in 2019, so any Pref. Rent becomes the payable rent for the duration of the tenancy. However the LL can go back to the "legal rent" on a new tenant. This might impact you if you want to takeover or assume the lease.

BTW, if you do make a play for the lease, the real prime tenant might have something to say about that. Also the LL has no obligation to rent to you. So if that's what you're thinking, I would be very quiet about all this until you actually have a lease in your name.

Built in 1920 ... it would not be a 421a building. NEVER believe anything from Streeteasy, NEVER EVER. Go to zola.planning.nyc.gov and plug in the address.

For J51, go to https://www.nyc.gov/site/finance/benefi ... s-j51.page
and
https://www.nyc.gov/site/hpd/services-a ... -j-51.page

J51 is usually for complete rehab of an entire building, not improvements within a specific apartment.

Bottom line here is your agenda. You are the sublet, not the actual prime tenant. Suspicious or not, you might not have standing to seek a declaration of RS status, and only DHCR or a court can make it official.

OTOH, if you think the prime tenant is overcharging you, then you might have a right to make a complaint. Find out how much he's actually paying the LL. For subletting rules, see https://hcr.ny.gov/system/files/documen ... 7-2022.pdf