MOVING A TENANT TO A LARGER APARTMENT DOES NOT REQUIRE REGULATORY STATUS TO FOLLOW
Transferring a rent-regulated tenant from one apartment to another does not automatically preserve the tenant’s regulatory rights. In a recent Article 78 proceeding in Westchester County, Jacqueline Handel-Harbour, successfully persuaded the Court to reverse a decision issued by the Division of Housing and Community Renewal (DHCR).
The DHCR had erroneously determined that a properly deregulated unit should be "re-regulated.” This decision came after a landlord moved a tenant from a smaller, regulated one-bedroom apartment, to a larger deregulated two-bedroom unit at the tenant’s request.
Despite facing opposition at every step, the firm robustly defended the landlord, citing extensive case law and arguments, ultimately securing a victory in the Supreme Court. The Court ruled that when determining a tenant’s current rental status, it is crucial to consider whether the apartment exchange benefited the landlord or if the landlord instigated the tenant's move. Conversely, if the transfer of apartments was entirely voluntary and requested by the tenant, the regulatory status does not transfer.
Consequently, when the tenant moved to a larger two-bedroom deregulated unit several years later due to family growth, it was incorrect for the DHCR to re-regulate the deregulated larger unit, claiming a lack of written agreement acknowledging the tenant's request and disclosure as to change in regulatory status.
The Court found the DHCR's requirement for a written document indicating the tenant’s relinquishment of rent-stabilized rights to be "arbitrary and capricious" as the evidence clearly showed that the tenant initiated the move. The Article 78 Petition commenced by the Landlord was granted. See: Alscot Realty LLC v. NYSDHCR.
