Apartment Was Improperly Deregulated But Overcharge Was Only $387

Tenant complained of rent overcharge and improper deregulation of his apartment. The DRA ruled against tenant in 2014 and found that the apartment was deregulated based on a May 1, 2003, exit registration filed by landlord.

Tenant appealed and lost. She then filed an Article 78 court appeal  in 2015. The DHCR agreed to take the case back for further review. In 2018, the DHCR again ruled against tenant, who again filed another Article 78 petition. In July 2019, attorneys for tenant and the DHCR agreed again to the take the case back for further review.

The DHCR found that J-51 tax benefits for the building expired on June 30, 2004. Under the 2009 Roberts case ruling, landlord wasn't entitled to deregulate the apartment in 2003. So the 2003 exit registration was void. There also was no proof that the rent exceeded the deregulation threshold of $2,000 per month in June 2004, so the apartment couldn't have been deregulated when the J-51 abatement expired. Now, under the 2020 Regina decision, tenant's complaint was subject to a four-year lookback period. Since there was no sufficient indicia of fraud, there was no grounds to look back further. An increase in the rent alone wasn't enough to look back further. The total rent overcharge, including interest, was $387. 

Choe: DHCR Adm. Rev. Docket No. HU410001RP (10/20/20) [4-pg. doc.]