No Overcharge Where Apartment Was Temporarily Exempt on Base Date

Tenant complained of rent overcharge. The DRA ruled against tenant, finding no overcharge. The apartment had been temporarily exempt from rent stabilization on the base date, four years before tenant filed her complaint. At that time, the building super lived in the apartment. Tenant then rented the apartment as a commercial space for her child care facility at $2,400 per month. Tenant appealed and lost. Since the apartment was exempt from rent stabilization on the base date, the legal regulated rent was the rent charged to the first stabilized tenant to move in after the temporary exemption ended, pursuant to Rent Stabilization Code Section 2526.1(a)(3)(iii). The apartment was registered at the time as "TE," and tenant produced no proof that this was untrue. In addition, if, as tenant stated, the apartment was used exclusively for professional or commercial purposes, it would be temporarily exempt from stabilization even if still rent stabilized.

Estrada: DHCR Adm. Rev. Docket No. BN210033RT (3/28/14) [2-pg. doc.]