Landlord Didn't Overcharge Tenant While Receiving J-51 Tax Benefits

Tenant complained of rent overcharge and claimed that landlord engaged in a fraudulent scheme to deregulate his apartment. The DRA ruled against tenant, finding no overcharge. Tenant appealed and lost. Tenant moved into the apartment in October 2010 under a two-year rent-stabilized lease at a monthly rent of $2,388. Before that, the base date rent was $1,194. When tenant moved in, landlord added a 20 percent vacancy increase, a 20-year longevity increase and an Individual Apartment Improvement (IAI) increase of $965 based on improvements costing $38,624. Landlord could have charged tenant an initial rent of more than $2,487. There was no combination of circumstances that warranted an investigation for fraud in this case. And landlord gave tenant a rent-stabilized lease because the building was receiving J-51 tax benefits. Landlord also submitted sufficient proof of the IAI cost.  

Magik: DHCR Adm. Rev. Docket No. ET210085RT (7/18/17) [4-pg. doc.]