Landlord Must Refund $124,000 to Tenant

Tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $124,000, including triple damages and interest. Because landlord didn't submit a full rent history, the DRA calculated tenant's rent using the DHCR's default formula. Landlord appealed, claiming that the DRA improperly disallowed a rent increase for apartment improvements made by prior landlord before tenant moved in. The DRA had asked landlord for proof of the improvements. The DHCR ruled against landlord. The DRA's request for proof of apartment improvements was a standard request, made at the same time that the DRA requested other rent history records. Because the landlord didn't submit a base date lease or rent ledger, the DRA properly used the default formula and disallowed any increase for claimed 1/40th improvements.

541-142 LLC: DHCR Adm. Rev. Docket No. VL410008RO (3/5/08) [3-pg. doc.]