Landlord Can't Charge Preferential Rent to First Tenant After Decontrol

Tenant complained of a rent overcharge based on prior tenant's rent. Landlord claimed that prior tenant paid a preferential rent of $1,075 but that prior tenant's legal rent was $1,200. Landlord said there was no overcharge. The DRA ruled against tenant. Tenant appealed, claiming that landlord couldn't use the preferential rent as a base rent. The DHCR ruled for tenant. Prior tenant was the first rent-stabilized tenant of the apartment after vacancy decontrol. Landlord couldn't charge a preferential rent in those circumstances. There was a total overcharge of $2,500.

Kandiyoti/Latham: DHCR Admin. Rev. Dckt. No. ML210114RT (8/13/01) [5-pg. doc.]