DHCR Looks Beyond Four-Year Base Date

Rent-stabilized tenant complained of a rent overcharge. The DRA dismissed the complaint, finding no overcharge. Tenant appealed, claiming that there was an overcharge based on landlord's fraud and that the DHCR should look beyond the four-year base rent date. The DHCR ruled against tenant, but then reopened the case to reconsider based on a housing court decision issued in tenant's favor. Looking to that decision, the DHCR then ruled for tenant. The court had ruled after a trial that tenant's vacancy lease commencing April 1, 2004, contained a preferential rent rider that was made effective for the duration of the tenancy. The court also found that landlord never gave tenant a renewal lease after his initial lease, so landlord wasn't entitled to collect any rent increases from tenant. Even without a fraud claim, the DHCR found that it could look beyond the base date rent history to determine a claim as to whether landlord failed to offer a renewal lease on the same terms and conditions. So tenant's rent should be reduced in accordance with the court's decision. Landlord must refund $24,000 to tenant, including triple damages.

Mackay: DHCR Adm. Rev. Docket No. AU410001RK (3/28/13) [6-pg. doc.]