Fraud Claim Triggers Review of Earlier Rent History

Tenant complained of a rent overcharge in 2008. His September 2001 rent was $3,000 per month, while the April 2001 registered rent was $1,515. Before that, the apartment had been rent controlled until 1999. Tenant questioned how the rent could have increased so much. The DRA ruled against tenant and dismissed the case because tenant's rent was more than $2,000 on the base date four years before tenant's complaint was filed, and therefore, the apartment was deregulated. Tenant appealed. The DHCR denied tenant's PAR. Tenant then filed a court appeal, and the case was sent back to the DHCR for further consideration. The DHCR found that the facts suggested fraud. There was a substantial increase in the 2001 rent, no individual apartment improvements were made that year during vacancy, landlord didn't inform tenant that the apartment had been previously rent regulated, and landlord made a vague claim that a prior tenant briefly occupied the apartment before tenant moved in. So there was a possibility of fraud that would justify examination of the rental history earlier than the four-year limitation period. The case was sent back to the DRA for investigation.

Sanchez: DHCR Adm. Rev. Docket No. ZA410005RP (11/10/11) [3-pg. doc.]