Apartment Didn't Become Vacant After Tax Abatement Ended

Tenant complained of a rent overcharge. Landlord claimed that tenant's apartment was exempt from rent stabilization. The DRA ruled for tenant and ordered a refund of over $10,000, including triple damages. Although the building had been substantially rehabilitated, landlord had received J-51 tax benefits, and the apartment didn't become vacant after the tax abatement ended. Landlord appealed. The DHCR ruled for landlord in part. Tenant submitted sufficient proof that he had lived in the apartment since September 1974. So the apartment remained rent stabilized and there was an overcharge. But because tenant and prior landlord had signed leases with riders stating that tenant had moved in after the expiration of the tax abatements and prior landlord represented this to new landlord at the sale of the building, new landlord didn't willfully overcharge tenant. The overcharge was reduced to $3,900.

3900 Harper Ave. LLC: DHCR Adm. Rev. Dckt. No. SA610041RO (3/31/04) [3-pg. doc.]