No Fraud Found in Connection with Rent-Stabilized Rent

Rent-stabilized tenant complained of rent overcharge. The DRA ruled against tenant, finding no rent overcharge. Tenant appealed and lost. Tenant's base date rent on Aug. 12, 2010, was $2,283.54 per month and, on the base date, tenant paid a preferential rent of $2,170.33 per month. There were no overcharges in subsequent legal regulated and preferential rents. The DRA found no indicia of fraud warranting review of pre-base date rent history. The DHCR agreed that there was no indication of fraud. The rent had never been deregulated. And a 2002 rent increase based on individual apartment improvements (IAIs) was insufficient to support a fraud claim. Tenant's claim that there was an overcharge at that point was time-barred. And landlord's failure to provide an explanatory lease rider didn't alone support a claim of fraud. Tenant's renewal leases and annual rent registrations gave sufficient notice of how tenant's rent increases were calculated. 

Cano: DHCR Adm. Rev. Docket No. EU410081RT (7/18/18) [5-pg. doc.]