No Improvement Increase Permitted Under Default Procedure

Tenant complained of a rent overcharge. The DRA ruled for tenant based on landlord's failure to submit its rent history records. The DRA ordered landlord to refund $45,000, with triple damages. Landlord appealed and lost. Landlord said the DHCR should have used annual rent registration data, filed by prior landlord, to calculate the rent. And landlord claimed that it had made 1/40th individual apartment improvements costing $30,000 before tenant moved in. The DRA correctly used the DHCR's default method to calculate tenant's legal rent. Landlord can't use the rent registration data to prove the rent history. Landlord didn't submit the leases to the DRA. And proof of the 1/40th improvements can't be used under DHCR's default procedure.

Newport Partners LLC: DHCR Adm. Rev. Docket Nos. UC410022RO & UC410024RO 7/12/06 [5-pg. doc.]