Housing Court Should Determine Amount of Overcharge in Nonpayment Case

Tenant complained to the DHCR of rent overcharge in 2009. The DRA ruled against tenant, finding that the apartment wasn't subject to rent stabilization because it became vacant on or after June 19, 1997, with a legal regulated rent of more than $2,000 per month. Tenant appealed and won, in part. Landlord had given a prior tenant a 15-year lease at $1,500 per month in 1993. But landlord periodically increased that tenant's rent to amounts over $2,000 per month without explanation. And there were no rent history records supporting a finding of proper deregulation. So the rent overcharge claim must be considered. The legal base date rent was the rent charged four years before tenant filed his complaint. So the legal base date rent was $2,500 per month. Tenant also was entitled to a permanent rent reduction of $121.34 per month based on landlord's reduction of required hotel stabilization services in the building. Since tenant filed no proof of rent payments with the DHCR, and since there was a pending nonpayment proceeding by landlord against tenant in housing court, the DHCR found that the court should determine the amount of overcharges--if any. Landlord was directed to calculate future rent increases based on the $2,500 rent and to amend all rent registrations to reflect the DHCR's order. Landlord should also offer tenant a renewal lease as required by the RSC since the building had been reclassified from hotel stabilized to rent stabilized.

Miller: DHCR Adm. Rev. Docket No. FN410044RT (10/14/22)[6-pg. document]