Landlord Failed to Preserve Legal Regulated Rent and Preferential Rent in Leases

Rent-stabilized tenant complained to the DHCR of rent overcharge in March 2019. The DRA ruled for tenant, finding that the overcharge resulted by the landlord waiving its right to charge a higher legal rent when it charged less than the legal rent in the lease renewal issued prior to the base date. The DRA directed landlord to refund $18,424, including triple damages. Landlord appealed and lost. Landlord's failure to preserve both the legal regulated rent and a preferential rent in a pre-base date lease and in subsequent leases properly resulted in the rent overcharge finding.

Provident Sunnyside LLC: DHCR Adm. Rev. Docket No. MN210021RO (6/10/24)[3-pg. document]