No Overcharge for Newly Created Apartment with First Rent

Tenant complained of rent overcharge. The DRA ruled against tenant. Landlord was entitled to collect a first rent of tenant's newly created apartment. Tenant hadn't made rent payments in several years and there was no overcharge. Tenant appealed and lost. Tenant was rent stabilized but landlord was entitled to collect a first rent under Rent Stabilization Code Section 2522.3 because the apartment didn't previously exist in its present dimensions before tenant moved in. Contrary to tenant's claim, this first rent wasn't subject to a fair market rent appeal or being set by rent guidelines. Tenant's other claims regarding the building's Certificate of Occupancy were outside the DHCR's authority. [Download PDF of decision here.]

Dawson: DHCR Adm. Rev. Docket No. ET410074RT (7/3/18) [4-pg. doc.]