Illusory Prime Tenant

February 1, 2005

LVT Number: 17887

Subtenant complained of a rent overcharge and claimed that there was an illusory prime tenancy. The DRA ruled for subtenant, and landlord appealed. The DHCR ruled against landlord. The DRA correctly found that there was an illusory tenancy. Tenant's leases with landlord listed his address not at the apartment but in Jersey City. And tenant signed a sworn statement that he didn't live in the apartment. The DRA also properly calculated the overcharge. It is the DHCR's policy to use its default method to calculate the legal rent in the case of an illusory tenancy.

Subtenant complained of a rent overcharge and claimed that there was an illusory prime tenancy. The DRA ruled for subtenant, and landlord appealed. The DHCR ruled against landlord. The DRA correctly found that there was an illusory tenancy. Tenant's leases with landlord listed his address not at the apartment but in Jersey City. And tenant signed a sworn statement that he didn't live in the apartment. The DRA also properly calculated the overcharge. It is the DHCR's policy to use its default method to calculate the legal rent in the case of an illusory tenancy. The total overcharge was $250.

Andromeda Realty LLC/Saber: DHCR Adm. Rev. Dckt. Nos. SJ410011RO & SJ410064RT (12/6/04) [5-pg. doc.]

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