Illusory Prime Tenant

August 31, 2000

LVT Number: 14388

Subtenant complained of a rent overcharge. She claimed that rent-stabilized tenant was actually landlord's niece and was an illusory tenant who never lived in the apartment. The DRA ruled that subtenant was the proper tenant and ordered a rent overcharge refund of $37,000. The DRA ruled that both landlord and tenant were responsible for the overcharge refund. Landlord appealed and lost. The tenancy was clearly illusory, so the overcharge was willful and warranted triple damages.

Subtenant complained of a rent overcharge. She claimed that rent-stabilized tenant was actually landlord's niece and was an illusory tenant who never lived in the apartment. The DRA ruled that subtenant was the proper tenant and ordered a rent overcharge refund of $37,000. The DRA ruled that both landlord and tenant were responsible for the overcharge refund. Landlord appealed and lost. The tenancy was clearly illusory, so the overcharge was willful and warranted triple damages. The DRA also properly used the default procedure for setting the legal rent, because the illusory prime tenant's rent can't be considered the legal rent.

Conti/Shapiro: DHCR Adm. Rev. Dckt. Nos. LB410008RO and LB410019RT (6/8/00) [4-pg. doc.]

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