Landlord Didn't Prove Base Date Rent

Tenant complained of a rent overcharge. The DHCR ruled for tenant based on landlord's failure to prove the base date rent. The DHCR calculated the rent overcharge using its default method. The DHCR also assessed triple damages, finding that the overcharge was willful. Landlord appealed, claiming that the DHCR's decision was unreasonable. The court and appeals court ruled against landlord. Landlord submitted a sworn statement of prior tenant, who supposedly resided in the apartment on the base date. Landlord got this statement in response to tenant's complaint. So the DHCR had the option of disregarding this proof. The DHCR properly set the base rent by using the lowest rent charged for a rent-stabilized apartment with the same number of rooms in the same building on the base date. And the DHCR reasonably found that the overcharge was willful. Landlord submitted no believable proof of apartment improvements that would justify a rent increase.

Mangano v. DHCR: NYLJ, 6/22/06, p. 32, col. 4 (App. Div. 1 Dept.; Buckley, PJ, Tom, Saxe, Sullivan, Williams, JJ)