Base Rent Not Fraudulent

Tenants complained of a rent overcharge. The DRA found no overcharge since the base date four years prior to the filing of the complaint. Tenants appealed and lost. Tenants argued that the DHCR should look back more than four years. When tenants moved into the apartment, more than four years before they complained, prior landlord had made them sign a lease stating that the apartment wasn't their primary residence. Prior tenant had been rent controlled. Tenants claimed this was fraudulent. The DHCR said prior landlord had registered tenants' apartment as rent stabilized at all times, registered the rent amounts charged, and charged legal increases upon lease renewal. There was no illusory tenancy or fraudulent lease involved that would warrant looking beyond the four-year time limit.

Pehrson: DHCR Adm. Rev. Docket No. UH410011RK (9/27/06) [4-pg. doc.]