No Admissible Proof of Preferential Rent

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and found that the legal regulated rent was $1,375. This was the rent collected from tenant and not the higher rent stated in tenant's vacancy lease. Landlord appealed and lost. Landlord claimed that the lower rent was a preferential rent, which was set forth in a preferential rent rider contained in tenant's lease. But former Rent Stabilization Code (RSC) Section 2521.2(c), which was in effect when the DRA issued its order, provided that the DHCR shall not review the rental history predating the four-year base date for the purpose of determining whether tenant has been charged a preferential rent and whether landlord was permitted to base the rents of future leases upon a higher legal regulated rent. New RSC Section 2526.1(a)(2)(viii), effective Jan. 8, 2014, does permit the DHCR to review a rental history earlier than four years to review a preferential rent claim. But this provision doesn't apply to a DRA order issued before that date. On the Jan. 20, 2006, base date for tenant's complaint, the apartment was vacant. So there was no rent history showing whether tenant was charged a preferential rent or permitting landlord to use in the future a higher legal regulated rent. [PDF]

Pinnacle Dunbar Manor LLC: DHCR Adm. Rev. Docket No. ZH410029RO (3/27/14) [2-pg. doc.]