Landlord's Production of Base Date Lease Reduced Overcharge from $102,000 to $600

The DHCR's Tenant Protection Unit (TPU) filed a rent overcharge complaint with the DRA on tenant's behalf after conducting a TPU audit investigation of tenant's apartment. The TPU claimed that the unit's legal registered rent wasn't fully substantiated. The DRA ruled for tenant, finding a four-month overcharge beginning five years after the base rent date, when landlord charged tenant more than her preferential rent. The DRA ordered landlord to refund $600, including triple damages.

Tenant appealed and lost. Tenant claimed that there was an error, pointing out that the DRA sent landlord a final notice of imposition of triple damages before deciding the case. In that notice, the DRA told landlord the total refund would be over $102,000. But the final notice indicated what the DRA's finding would be if a default formula was used to set the base rent. The Final Notice finding was subject to change if landlord submitted additional information. Landlord did so, showing that the base date rent was $655 per month. So, there was no need to use the default formula to determine the overcharge. 

Gjergjaj: DHCR Adm. Rev. Docket No. JV610003RT (12/2/21)[3-pg. document]