DHCR Default Method Calculation Correct

Tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $6,200, including triple damages. The DRA used the DHCR's default method to set the rent, because landlord didn't submit a complete rent history. Landlord appealed, arguing that the DRA incorrectly used the rent for Apartment 1R in calculating the lowest comparable apartment rent. Landlord claimed that the apartment was smaller than tenant's apartment, 2R. The DHCR ruled against landlord. The DRA had ruled correctly. The DHCR's default method has been upheld by the courts. One approach under the default method is to set the rent at the lowest rent for an apartment in the building with the same number of rooms. The square footage doesn't matter. And if Apartment 1R is smaller than Apartment 2R, there was no harm to landlord in using that apartment to set the legal rent.

Mahlman: DHCR Adm. Rev. Docket No. VC210017RO (5/17/07) [2-pg. doc.]