DHCR Reconsiders Whether Apartment Was Improperly Deregulated

Tenant in building that became subject to J-51 tax benefits in 2007 complained of rent overcharge and improper apartment deregulation. Tenant also claimed fraud. The DHCR found no overcharge and no reason to investigate the base date rent [see case #27398]. Tenant then filed an Article 78 court appeal, claiming that the DHCR's decision was arbitrary and unreasonable. The court sent the case back to the DHCR for further consideration. It was unclear what the last rent-stabilized rent was, and the DHCR ruled that whether there was a fraudulent scheme to deregulate tenant's apartment must be further examined and sent the case back to the DRA. The DRA also must examine whether there were individual apartment improvements that resulted in proper rent increases resulting in deregulation in 2006, before the J-51 benefits were obtained. 

Kovacs: DHCR Adm. Rev. Docket No. FW610008RP (1/25/18) [3-pg. doc.]