No First Rent, But No Willful Overcharge

Rent-stabilized tenant complained of a rent overcharge. Landlord claimed that he was entitled to charge tenant a first rent for a newly created apartment. The DRA ruled for tenant and ordered landlord to refund almost $30,000 including triple damages. Landlord appealed, claiming that he had significantly changed the configuration of the apartment and so was entitled to collect a first rent for a newly created apartment. Before 1983, prior landlord had connected Apartments 2L and 2R by building an internal doorway between the two units. Current landlord then sealed the doorway before April 1, 1984, so that, on the rent stabilization base date, two rooms of the previously combined apartment were sealed off. Tenant later insisted that landlord add back the two rooms by unsealing the door. The DHCR found that landlord didn't create a new apartment by unsealing the interior door. The outer walls of the previously combined apartments weren't changed. But landlord could reasonably and in good faith believe that it was correctly interpreting the law. So the DHCR revoked the triple damages.

Marrone: DHCR Adm. Rev. Docket No. YF210069RO (3/31/11) [3-pg. doc.]