No Evidence of Fraud by Landlord

Rent-stabilized tenant complained of rent overcharge and claimed fraud by landlord. The DRA found no fraud and found a total overcharge of only $348. Tenant appealed and lost. Tenant claimed that landlord illegally increased rents prior to the base rent date. But there was no evidence that landlord or prior landlord had illegally increased rents in order to reach the luxury deregulation threshold. Although prior tenant's base date lease stated that the apartment wasn't rent stabilized, there was no indication that landlord attempted to preserve a higher legal regulated rent or qualify the $1,500 charged as a preferential rent. Renewal leases given to prior tenant were based on applicable rent guidelines board increases. Landlord also never denied that it received J-51 tax benefits and didn't try to deregulate the apartment despite the J-51 status. There also was no proof that prior landlord tried to deregulate the apartment based on improvements. The fact that the apartment wasn't registered with the DHCR from 2002 to 2008 also was insufficient to prove fraud. The rent both before and after the registration hiatus was always below $2,000. And, in 2009, landlord collected only $1,500 from tenant when the legal rent charged could have been $1,800.

Parent: DHCR Adm. Rev. Docket No. AQ410004RT (8/13/14) [6-pg. doc.]