Landlord Can't Submit Comparability Data on Appeal

Tenant complained in 1990 that his initial rent of $2,100 was greater than the fair market rent. The DRA at first treated tenant's complaint as one of rent overcharge, but later notified landlord, in 1994, that it was a fair market rent appeal. Landlord asked for several extensions, then answered the notice. The DRA ruled for tenant and reduced his first rent to $1,000. Landlord was ordered to refund $50,000 to tenant. Landlord appealed. By this time, after the Rent Regulation Reform Act of 1997, comparability data requirements had changed. Landlord was no longer required to submit RR1 or DC2 forms for comparable apartments which had been registered for four years without challenge. Landlord submitted comparability data to the DHCR. The DHCR accepted landlord's comparables and increased the initial legal rent to $1,750. Tenant then appealed. The court ruled that landlord could submit the comparability data on appeal only if good cause were shown for not submitting this information to the DRA. The DHCR reconsidered the matter and ruled against landlord. Landlord claimed that in 1994, when he answered tenant's complaint, his managing agent had recently died and landlord couldn't retrieve certain building records. But tenant's complaint was filed in 1990, and in 1992 landlord asked the DRA to treat tenant's complaint as a fair market rent appeal. Landlord submitted other information, but never submitted comparability data during the extended time that the complaint was pending before the DRA. It didn't show good cause for not doing so.

ABC Realty: DHCR Adm. Rev. Dckt. No. SB410010RP (10/28/04) [5-pg. doc.]