No 1/40th Rent Hike Allowed Where Tenant Not Given Lease

March 1, 2008

LVT Number: #20268

Tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $20,250, including triple damages. The DRA found that landlord improperly offered tenant a backdated two-year vacancy lease. Tenant had lived in the apartment without a lease since 2005. Landlord appealed, arguing that the DRA improperly disallowed a rent hike for individual apartment improvements. Landlord had submitted proof of the costs of improvements it claimed allowed for a $1,000 rent increase. The DHCR ruled against landlord.

Tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $20,250, including triple damages. The DRA found that landlord improperly offered tenant a backdated two-year vacancy lease. Tenant had lived in the apartment without a lease since 2005. Landlord appealed, arguing that the DRA improperly disallowed a rent hike for individual apartment improvements. Landlord had submitted proof of the costs of improvements it claimed allowed for a $1,000 rent increase. The DHCR ruled against landlord. Since landlord didn't give tenant a rent-stabilized lease when tenant moved into the apartment, landlord couldn't collect any 1/40th rent increase.

Lopez: DHCR Adm. Rev. Docket No. VG210022RO (12/10/07) [4-pg. doc.]

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