Base Date Rent Set by Default Formula Because No Lease or Ledger Submitted

Rent-stabilized tenant complained of rent overcharge in 2023. The DRA ruled for tenant and ordered landlord to refund $8,144, including triple damages and interest. Because landlord failed to submit a lease and/or rent ledger in effect on the base rent date, the DRA set the base date rent by using the default formula and used the lowest registered monthly stabilized rent in the building on the base date for the same size apartment. The base date rent therefore was $826.65. The DRA froze the rent at that amount since the apartment wasn't registered. 

Landlord appealed and lost. The DRA correctly used the January 2017 rent as the base date rent. The DRA also correctly set the base date rent using the default formula pursuant to RSC Section 2522.6(b)(3)(i). Landlord argued incorrectly that the base rent should be $1,335.78. That was the registered rent for the comparable apartment after the base date but not on the base date. Landlord also argued that the rent shouldn't have been frozen. But the apartment wasn't registered on or after the base date, or during the time covered by the DRA's Order. Under RSC Section 2528.4(a), the rent was properly frozen.

Nowak: DHCR Adm. Rev. Docket No. MO210005RO (11/5/24)[2-pg. doc.]