First Rent Can't Be Preferential

Tenant filed a fair market rent appeal. The DRA dismissed the complaint because it wasn't filed within 90 days of the date landlord sent tenant the RR-1 form. Tenant appealed, pointing out that the rent under her lease was $1,960 per month, but that landlord charged her a preferential rent of $1,700. The DHCR ruled for tenant in part. The DRA properly found that tenant's fair market rent appeal wasn't filed on time. But since tenant was the first rent-stabilized tenant, landlord wasn't allowed to charge a preferential rent. So the legal regulated rent was limited to the $1,700 amount actually collected from tenant by landlord.

Stanfield: DHCR Admin. Rev. Dckt. No. PL210066RT (3/15/02) [2-pg. doc.]