Base Date Rent Data Not Reliable

Tenant complained of rent overcharge. He claimed that landlord illegally increased the rent from $590 to $1,800 when he moved into the apartment and improperly gave him a deregulated vacancy lease. The base date lease for prior tenant was deregulated at a rent of $1,825. But landlord further answered the complaint by saying that the base date rent should be $1,613 and that the apartment wasn't destabilized on the base date or later when tenant moved in. Landlord submitted proof of individual apartment improvements and admitted to an overcharge of $939 plus interest. Landlord refunded this amount to tenant, who wouldn't accept it. Landlord also filed amended rent registrations and adjusted tenant's rent. The DRA found that the base date rent was $1,825, and that there was a total overcharge of $4,794, including interest. Tenant appealed, claiming that the overcharge was higher and willful. Tenant also claimed landlord committed fraud and that the DRA should have investigated prior rent history.

The DHCR ruled for tenant, reopened the case, and sent it back to the DRA for reconsideration. There was ambiguity as to the amount of the rent on the base date and whether the base date rent submitted by landlord was reliable. Landlord admitted that the base date rent wasn't $1,825 due to a mistake and previously claimed the apartment was deregulated even though the base date rent was less than $2,000 per month. 

Fishel: DHCR Adm. Rev. Docket No. CQ410028RT (3/4/15) [4-pg. doc.]