Landlord Corrected Rent Registrations

Rent-stabilized tenant complained of rent overcharge and claimed fraud by landlord. The DRA found a total rent overcharge of $1,680, including interest. Tenant appealed and lost. Landlord had previously registered the apartment as permanently exempt in error in 2012 while the building was receiving J-51 tax benefits. But landlord corrected that error. Landlord also refunded any overcharge to tenant in a timely manner, so there was no willful overcharge. Landlord's 2011 registration of the apartment as vacant was correct since the apartment was vacant at that time. Landlord also had amended rent registrations by registering the apartment thereafter as rent stabilized, not permanently exempt. The base date rent of $1,900 wasn't subject to challenge and there was no basis to investigate pre-base date rental events since there was insufficient indication of fraud. 

Diaz: DHCR Adm. Rev. Docket No. GM210012RT (10/9/18) [4-pg. doc.]