DHCR Must Reconsider Rent Overcharge Claim Alleging Fraud

Tenant complained of rent overcharge and claimed that landlord had unjustifiably increased the apartment rent from $250 to $1,300 in 2006. The DRA ruled against tenant, finding that the base rent date was Dec. 30, 2009, and the legal regulated rent on that date was $1,300 per month. The DRA also found insufficient proof of fraud to warrant investigation of the pre-base date rent history. The DRA did find a rent overcharge of $25,900 but didn't impose triple damages because landlord had refunded the overcharge with interest to tenant. Tenant appealed, and the DHCR denied his PAR. Tenant then filed an Article 78 court appeal of the DHCR's decision. The court ruled for tenant and sent the case back to the DHCR for further consideration. The DHCR ruled that it was therefore sending the case back to the DRA for a new ruling on the rent overcharge claim. Any directive to refund overcharges was stayed pending a new DHCR ruling.

Aidekman: DHCR Adm. Rev. Docket No. GS410003RP (7/17/18) [4-pg. doc.]