Landlord Showed Lease History of Preferential Rent and Lawful Rent Increases

Rent-stabilized tenant complained of rent overcharge in 2017. The DRA applied a four-year base date and ruled against tenant in March 2019, finding no overcharge. Tenant appealed and lost. While at first the DHCR was to consider base date changes applied retroactively by HSTPA in June 2019, the DHCR later noted that New York's highest court struck down those changes to rent overcharge law in the 2020 decision of Regina Metro. Co. v. DHCR. Tenant had also claimed that fraud by the landlord required review of pre-base date rent history, but the DHCR found no sufficient claim of a fraudulent scheme to deregulate the apartment. Tenant moved into the apartment in April 2005 under a two-year lease with an initial preferential monthly rent of $1,250 and a preserved legal regulated rent of $2,115 per month. Tenant's base date lease in 2013 again listed a preserved legal regulated rent and a lower preferential rent. The validity of the preferential rent was traced all the way back to tenant's vacancy lease. Under subsequent leases, landlord never charged more than the preferential rent plus applicable guideline increases. Tenant's claim that landlord registered the legal regulated rent for the first time in 2012, having previously registered only the preferential rent, wasn't proof of fraud and didn't result in the elimination of the higher legal regulated rent. Landlord had submitted all of the leases preserving the higher legal rent. And landlord properly registered the apartment as vacant in 2005, because he didn't move in until April 27, and registration reflected the April 1 apartment status.

Slayton: DHCR Adm. Rev. Docket No. IS410019RK (6/7/21)[4-pg. document]