Ask Altagracia: I checked my apartment's rent history and I think it was illegally de-stabilized. What should I do?
- Analyze how much the rent went up through vacancy increases and apartment improvements
- A lawyer can review your case, paint a picture of potential outcomes, and identify possible risks
Checking the building’s J-51 status may also help. The J-51 tax abatement gives landlords a property tax break to upgrade old buildings in exchange for keeping apartments stabilized.
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I checked my rent history, and my apartment was listed as rent stabilized until 2008. The rent is now more than triple what it was the last time it was listed as stabilized. I think it might have been illegally deregulated. What should I do?
Checking your apartment's rent history is a very good place to start when figuring out whether your apartment was deregulated illegally. If it turns out that you’re correct, your apartment may be restabilized and you may recover your rent overcharges, including potential treble damages. But you’re going to have to decide if the battle with your landlord is worth it.
“Prior to 2019, landlords could deregulate an apartment once a tenant vacated, and once the rent legally reached a certain threshold,” said Altagracia Pierre-Outerbridge, attorney and founder of Outerbridge Law representing residential tenants, condo owners and landlords. In 2008, the threshold was set at $2,000.
“Landlords could raise the rent of stabilized apartments for a few legitimate reasons, including vacancy increases and Individual Apartment Improvements,” Pierre-Outerbridge said. “In 2008, the vacancy increase was set at around 20 percent.”
Today, the IAI increase, which covers major repairs like major kitchen or bathroom renovations, or new flooring, is capped at a dollar amount, but in 2008, it was 1/40th of the total cost of the renovation. An IAI increase combined with a vacancy increase of 20 percent could hike the rent over that $2,000 threshold and legally allow the landlord to charge as much as they want.
It’s worth noting that vacancy destabilization ended in 2019 with the Housing Stability and Tenant Protection Act.
You can challenge your landlord if you believe your unit was unlawfully destabilized, but it’s important to do the math to make sure your claim has validity.
Crunching the numbers
First, Pierre-Outerbridge recommends analyzing the rent history prior to 2008 and to see whether your landlord could have crossed that $2,000 threshold fairly based on IAI and vacancy increases.
Here’s one example: if the prior tenant paid $1,000 in rent, a vacancy increase could bring the rent to $1,200. If major renovations also took place amounting to $40,000 or more, the landlord could add another $1,000 to the rent, pushing it over the $2,000 threshold.
Checking the building’s J-51 status may also help shed some light on what happened. The J-51 tax abatement gives landlords a property tax break to upgrade old buildings in exchange for keeping apartments stabilized. You can enter your address into the HPD website and put the information you receive into the city’s J-51 benefit site.
“If a J-51 abatement was in place at the time that you moved in, the apartment should be stabilized,” Pierre-Outerbridge said. “And if the building is no longer benefitting from the J-51 abatement, your landlord is required to provide notice that the apartment is leaving stabilization in lease renewals. So if your landlord skipped that step, it’s a procedural error, and you can likely challenge them.”
Taking action
Once you’ve gathered as much information as you can, you can write or email your landlord requesting that they show documentation that explains how the apartment was deregulated, such as leases, contracts, and checks. It also might be a good time to consult a lawyer who can review your specific case, paint a picture of potential outcomes, and identify possible risks.
“If you ask your landlord to provide documentation for how they deregulated the apartment, they’re likely to resist,” Pierre-Outerbridge said. “You’ll need to decide how you’d like to escalate, whether you’d like to sue or perhaps file a complaint with DHCR. A lawyer can lay out your options for you, which may also include withholding rent and how to do so, and advise on the specifics of your situation.”
A successful lawsuit could result in restabilization of your apartment and recovering your rent overcharges, including potential treble damages. That’s if all goes well, Pierre-Outerbridge said, who also acknowledged that landlords may retaliate, perhaps by refusing to renew your lease or address maintenance issues in your unit.
“Ask your lawyer to go over what could be at risk if you’re unsuccessful,” Pierre-Outerbridge said. “Your lawyer can evaluate your odds and make sure you’re protected if you decide to take action.”
Altagracia Pierre-Outerbridge, Esq. is the owner of Outerbridge Law P.C, focusing primarily on tenant representation. The firm represents all sides in landlord-tenant litigation and transactional matters such as month-to-month holdovers, nuisance cases, licensee cases, harassment claims, repair cases, tenant buyouts, succession claims, DHCR overcharges and rent reductions and more. Pierre-Outerbridge has 15 years of experience litigating in Supreme, DHCR, and Housing Court. To submit a question for this column, click here. To contact Outerbridge Law P.C. directly, call 212-364-5612 or 877-OUTERBRIDGE, or schedule a meeting today.
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