Housing Court Can Decide Tenant's Legal Regulated Rent

In July 2015, landlord asked the DHCR for a ruling as to the legal regulated rent of tenant's apartment. Tenant had moved into the apartment in August 2006. Prior landlord had received J-51 benefits for the building until June 30, 2009, and had improperly deregulated tenant's apartment in accordance with the DHCR's "pre-Roberts" policy. In July 2015, shortly after filing its application with the DHCR, landlord also started a nonpayment proceeding against tenant in housing court, claiming that tenant owed $38,000 in back rent. Landlord claimed that tenant's monthly legal regulated rent was $4,200.

The DRA ruled that landlord should set tenant's rent in accordance with the DHCR advisory policy set forth in the 2016 "J-51 Rent Registration Initiative-FAQs" memo. Tenant requested reconsideration, based on illegality, irregularity in a vital matter, and fraud. 

The DRA ruled for tenant in part. The DRA hadn't sent a copy of landlord's application to tenant. The DRA order was revoked, but the DHCR case wasn't reopened. Landlord had advised the DRA of the nonpayment case. The court had ruled in April 2016 that tenant was entitled to pretrial questioning concerning rent history records. So the court could decide the question of tenant's legal regulated rent.

Goldenberg: DHCR Adm. Rev. Docket No. EV410012RT (5/11/17) [5-pg. doc.]