Insufficient Proof Apartment Temporarily Exempt from Stabilization

Tenant complained of a rent overcharge. The DRA ruled for tenant and found a willful overcharge. The DRA ordered landlord to refund tenant $60,000, including triple damages. Landlord appealed, claiming there was no overcharge because the apartment was temporarily exempt on the base date. Landlord also argued that, in any event, the overcharge was calculated incorrectly. The DHCR ruled for landlord, in part. Landlord argued that prior landlord's mother lived in the apartment on the base date and paid no rent. Landlord submitted a sworn statement from prior landlord's mother. But prior landlord registered his mother's apartment as rent stabilized with a stated rent amount for a number of years. Landlord amended the registrations to state "temporarily exempt" only after buying the building. Given contradictory documents, landlord couldn't prove the apartment was exempt on the base date. However, landlord correctly pointed out that tenant paid rent for only 10 months. So the total overcharge, with triple damages, was only $16,500.

Johnson: DHCR Adm. Rev. Docket No. VC210049RO (7/13/07) [5-pg. doc.]