Landlord Can't Prove Preferential Rent

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and ordered a refund. Landlord appealed and lost. Landlord argued that the $809 base date rent charged four years before the date of tenant’s complaint was a preferential rent, not the legal regulated rent, and that this could be proved by review of prior tenant’s 1999 lease. Subsequent rent increases based on the legal regulated rent therefore were lawful. Landlord pointed out that the Rent Stabilization Code permits a preferential rent to remain unmentioned in renewal leases if it was set forth in the vacancy lease. But the DHCR can’t consider rent history records that predate the base date, even to confirm a preferential rent. The DRA correctly determined that there was an overcharge.

Jahaca Acquisitions, LLC: DHCR Adm. Rev. Docket No. XK210045RO (7/19/12) [3-pg. doc.]