Base Date Rent Was Over $2,000 Per Month

Tenant complained of a rent overcharge. The DRA ruled against tenant, finding no overcharge. Because the base date rent on July 25, 2003, was over $2,000 per month, the DRA found that the apartment was deregulated and not subject to an overcharge claim. Tenant appealed. His initial lease commenced on July 15, 2003, at a monthly rent of $4,400, although he didn't move in until Aug. 1, 2003. Tenant pointed out that landlord had never registered the apartment at any time since 1984. Tenant argued that therefore his apartment wasn't subject to high-rent vacancy deregulation. Landlord showed that a report of vacancy decontrol was filed in 1997 when a prior rent-controlled tenant moved out. Landlord said that the first rent after decontrol was over $2,000 per month. So the apartment was never subject to rent stabilization. The DHCR ruled against tenant. Landlord submitted a copy of a letter given to the first tenant after decontrol in 1997, stating that the apartment had become exempt from rent stabilization because the rent was more than $2,000 per month. With the letter, landlord gave prior tenant documentation of the MBR for the rent-controlled tenant and explained that the rent increase was based on extensive apartment renovations. Landlord's failure to file registration statements from 1984 to the present didn't extend the four-year rent history review period applicable to rent overcharge complaints. The DHCR can review earlier rent history records to determine if an apartment was regulated. In this case, landlord presented records showing that the apartment was deregulated in 1997. So there was no reason for landlord to have filed annual apartment registration forms. In addition, the apartment was vacant on the July 25, 2003, base date. For this reason, the base rent is considered to be the next rent, which was the $4,400 paid by tenant.

Lejas: DHCR Adm. Rev. Docket No. VJ410063RT (2/14/08) [4-pg. doc.]