Employee of Prior Landlord Wasn't Temporarily Exempt from Rent Stabilization

Tenant complained of a rent overcharge. The DRA ruled for tenant. Landlord appealed, claiming that tenant occupied the apartment as an affiliated employee of prior landlord on the base date, and so the first rent charged to tenant thereafter was the legal base rent. The DHCR ruled against landlord. Tenant was employed by prior landlord's managing agent and was given a one-year lease with a right to renew for another year. Tenant didn't move out when prior landlord sold the building to landlord. So the rent that prior landlord charged tenant four years before tenant filed his complaint was the base rent, and there was an overcharge. However, the overcharge wasn't willful because new landlord reasonably believed that tenant was an exempt employee of prior landlord.

100 E. 92nd St., LLC: DHCR Adm. Rev. Dckt. No. RA210029RO (3/12/03) [3-pg. doc.]