New Landlord Can't Raise Rent Charged by Receiver

Landlord asked the DHCR to determine rent-stabilized tenant's legal rent. Landlord bought the building in a foreclosure sale in 2009. Landlord had received a rent ledger listing tenant Tejeda's monthly rent as $400. But the DHCR rent registration records listed another individual as the tenant. Based on information submitted by landlord and tenant, the DRA found that Tejeda was the tenant whose legal rent was $400 per month. Landlord appealed and lost. Landlord claimed that the DRA ignored proof submitted by landlord that HRA paid partial rent for tenant directly to landlord in the amount of $138. Landlord argued that this amount should be added to the $400 to determine the legal rent. The DHCR ruled against landlord. The receiver's records were given to landlord and listed the $400 rent, which tenant didn't dispute. And tenant had submitted canceled checks showing that he paid $400 per month. Tenant didn't appear to be receiving an ongoing rent subsidy, so the DRA reasonably disregarded these payments as supposed proof of a higher legal rent. Landlord can increase tenant's rent only when tenant's lease is properly renewed.

Clarendon Properties NY LLC: DHCR Adm. Rev. Docket No. YJ220036RO (1/27/12) [5-pg. doc.]