DRA Calculated Default Rent Incorrectly

Hotel tenant complained of a rent overcharge. Tenant had asked landlord for a lease, but none was provided. The DRA found that tenant was a permanent tenant subject to hotel stabilization. Landlord submitted no rent history documents in response to tenant's complaint, so the DRA used the DHCR's default method to determine the legal rent. But the DRA found no overcharge. The base date for calculating any overcharge was Feb. 21, 2003. Landlord didn't register the apartment between 2003 and 2006. The DRA stated that tenant's initial rent was the legal rent. The DRA calculated the default initial rent by subtracting the zero percent Rent Guidelines adjustment landlord was entitled to from the $450 initially charged to tenant. Because the rent charged and paid was equal to the default rent, there was no overcharge. Tenant appealed, claiming that the DRA's calculation was wrong. The DHCR ruled for tenant. The DRA should have subtracted from tenant's initial rent the statutory vacancy allowance that landlord was entitled to collect when tenant moved in. The DRA must recalculate the default rent.

Maher: DHCR Adm. Rev. Docket No. VJ210030RT (11/28/07) [2-pg. doc.]