Court Rules That DHCR Should Decide Overcharge Claim

Unregulated tenant sued landlord for rent overcharge and claimed improper deregulation of her apartment. Tenant moved into the apartment in May 2012 at a monthly rent of $3,900, and renewed her lease three times. The last rent-stabilized tenant moved out in 2008 with a last registered rent of $2,408.73. But the building was receiving J-51 tax benefits when tenant moved in, and landlord admitted that tenant was therefore rent stabilized. The court noted that, while it couldn't examine the rent history beyond four years to determine whether there had been overcharge, this didn't mean that the rent charged on the base date must be presumed to be correct. The court found that, given the "meager evidence" submitted by landlord and tenant, consisting solely of leases and the DHCR rent registration records, it was left "without any legally sanctioned method to determine the base date rent for the apartment." So, the court ruled that the DHCR should determine the rent overcharge claim, given its "expertise and discretion in rent regulation matters."

Jacobson v. Jemrock Realty Co., LLC: Index No. 152114/2015, 2019 NY Slip Op 30617(U) (Sup. Ct. NY; 3/15/19; Cannataro, J)