DHCR Default Method Properly Applied

Tenant complained of a rent overcharge. The DRA ruled for tenant based on landlord's failure to submit rent history records. Using its default method, the DRA set the rent by taking the lowest rent from the DHCR's registration information for the same size apartment for the same lease period in the same building. The DRA ordered landlord to refund $7,000, including triple damages. Landlord appealed, claiming that the DRA incorrectly used a rent-controlled rent as the lowest rent in applying its default method. The DHCR ruled against landlord. Landlord had mistakenly registered a rent-controlled apartment as rent stabilized. And landlord didn't advise the DRA of this error, even after getting notice that the DHCR would use the default method to set tenant's rent if rent history records weren't produced. It was too late to correct this error.

1345 Washington, Inc.: DHCR Adm. Rev. Docket No. VE610042RO (10/26/07) [3-pg. doc.]