No Fraud in Connection with Tenant's Overcharge Claim

Rent-stabilized tenant complained of rent overcharge. The DRA ruled against tenant, finding no overcharge since the base rent date. Landlord had legally increased the legal regulated rent since the base date and tenant had paid a preferential rent throughout that time. Tenant appealed and lost. Tenant claimed that landlord committed fraud and that therefore the DHCR should look at rent history events occurring before the base date. Tenant claimed that rental events occurring between 2007 and 2009 involved unjustified individual apartment improvements (IAIs). Landlord pointed out that tenant didn’t raise any fraud claim before the DRA. The DHCR noted that landlord offered tenant a rent-stabilized vacancy lease at a rent that was below the decontrol threshold in effect at the time. The fact that the rent-stabilized lease rider given to tenant with her vacancy lease wasn't filled out isn’t proof of fraud. Landlord also never sought to amend apartment registrations after tenant filed the complaint, and the registrations are consistent with leases submitted to the DRA. And the apartment was always registered as rent stabilized. 

Thomas: DHCR Adm. Rev. Docket No. DW210043RT (4/6/16) [7-pg. doc.]