Default Method Used to Calculate Rent Overcharge

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and used its default method to set the rent. Landlord appealed and lost. Landlord didn't produce the lease in effect on the May 25, 2006, base rent date. Landlord argued that it bought the building in October 2007 and didn't know there was any overcharge and pointed out that the apartment was registered in 2006. But since landlord submitted no valid base date lease, the DRA correctly calculated the base date rent as the tenant's initial rent minus the vacancy increase percentage in effect at that time. Tenant's rent was then frozen until 90 days after the DRA's order was issued. The 2006 annual registered rent didn't legally establish the base date rent. And landlord was responsible for overcharges collected by prior landlord under Rent Stabilization Code Section 2526.1(f)(2)(i).

Luma: DHCR Adm. Rev. Docket No. AV210022RO (8/19/14) [2-pg. doc.]