DHCR Reopens Rent Overcharge Case

Tenant complained to the DHCR in 2020 of rent overcharge and improper deregulation of his apartment. Tenant claimed that landlord had illegally deregulated the apartment before he moved in in 2014 at a monthly rent of $2,600. Landlord didn't answer the DRA's notice of tenant's complaint or a follow-up Request for Additional Information (RFAI) sent in 2024. Nevertheless, the DRA ruled against tenant, finding that the apartment was deregulated when prior tenant's legal regulated rent exceeded the high-rent deregulation threshold of $2,000.

Tenant appealed, claiming that the alleged deregulation of the apartment was unlawful and must be investigated by the DHCR. Landlord didn't respond to the DHCR's notice of tenant's PAR. The DHCR then sent the case back the DRA for further consideration. Since landlord failed to answer the tenant's complaint and didn't produce any documentation requested by the DRA, there was no basis for the DRA's ruling that the apartment was legally deregulated before tenant moved in. Further investigation was warranted. 

Devore: DHCR Adm. Rev. Docket No. MT410008RT (10/29/24)[2-pg. document]