Increase in Registered Stabilized Rent Didn't Support Colorable Claim of Fraud

Tenant complained to the DHCR of rent overcharge, claiming that landlord engaged in a fraudulent illusory tenancy scheme. The DRA ruled against tenant, finding no rent overcharge. Tenant appealed and lost. Tenant argued that the DRA should have looked back more than four years based on landlord's fraud. Tenant claimed that landlord had given itself an unwarranted IAI increase in 2012. The DHCR noted that the increase in the registered rent between 2011 and 2012 wasn't sufficient, by itself, to warrant investigation of pre-base date rental events. It didn't establish a "colorable claim of fraud." A mere allegation of fraud, without more, won't be sufficient to require the DHCR to investigate rental events prior to the base date. 

Nelson: DHCR Adm. Rev. No. KP210027RT (8/2/22)[4-pg. document]