Default Formula Applied to Overcharge Claim

The DHCR’s Tenant Protection Unit (TPU) commenced an audit against landlord, stating that claimed individual apartment improvements (IAIs) didn’t support the 2011 registered rent. The TPU instructed landlord to take certain actions, including resetting the apartment rent to $1,547.33 plus any applicable increases. The TPU later referred the case to the DRA, which found a rent overcharge and ordered landlord to refund $28,000 to tenant, including interest. The result was based on the DHCR’s default formula.

Landlord appealed and lost. Landlord claimed that it had complied with the TPU’s instructions, so there should be no further penalty. But landlord complied with only one of the four instructions issued by the TPU. And the TPU notified landlord that, once referred to the DRA, the DRA would conduct its own independent review of the apartment’s rent history. That meant that there could be issues other than the IAIs. Landlord also failed to respond to the DRA’s request for additional information and therefore couldn’t now submit additional documentation. 

Argos Realty, LLC: DHCR Adm. Rev. Docket No. CV110024RO (6/10/15) [4-pg. doc.]