No Fraud Found in Rent Overcharge Case

Rent-stabilized tenant complained of a rent overcharge. The DHCR ruled against tenant, finding no overcharge. Tenant appealed, claiming that prior landlord committed fraud by registering many of the building’s apartments as permanently exempt. Tenant claimed that all rent increases based on the fraudulent registration were illegal. The court ruled against tenant, finding the DHCR's decision was reasonable. There was no proof that tenant’s lease was fraudulent or void at the outset. Tenant couldn’t challenge rent registration records that predated the base date, which was four years before tenant filed her complaint. There also was no reason why tenant couldn’t have challenged her rent within four years.

Gomez v. DHCR: NYLJ, 4/29/09, p. 30, col. 3 (Sup. Ct. Kings; Hinds-Radix, J)