Base Date Rent Reduced to Preferential Rent

Rent-stabilized tenant complained of rent overcharge. The DRA asked landlord to submit a copy of tenant's lease predating the February 2012 base rent date because tenant paid a preferential rent rather than the higher legal regulated rent. Landlord didn't respond to that request. The DRA ruled for tenant in part, finding no rent overcharge but reducing the legal rent to the amount of the preferential rent. Landlord and tenant both appealed and lost. Tenant sought to challenge rents charged before the base rent date, but there was no proof of fraud and the base date rent was properly set at $972. Landlord argued that the legal regulated rent set forth in tenant's base date lease was the proper base date rent. But Rent Stabilization Code Section 2521.2(c) permitted the DRA to seek submission of the rental history immediately preceding the base date preferential rent, in order to prove the preferential rent. Since landlord didn't submit the requested rent history record, it didn't establish the legality of the higher legal regulated rent of $1,228. 

Herrera/2472 Valentine Realty LLC: DHCR Adm. Rev. Docket Nos. FR610024RT, FR610054RO (1/24/18) [5-pg. doc.]