No Overcharge Where Landlord Lowered Base Date Rent Upon Renewal

Rent-stabilized tenant complained of rent overcharge, and claimed that landlord fraudulently attempted to deregulate the apartment. The DRA ruled against tenant, finding no overcharge. The DRA found that the legal regulated rent was $1,350 on the base rent date, which new landlord charged tenant. The legal regulated rent was lowered to $1,082 on April 1, 2009, based on the amount that landlord was charging tenant as of that date. There was no overcharge because tenant was paying less than the legal regulated rent throughout his tenancy.

Tenant appealed and lost, again claiming fraud. Prior landlord gave tenant a rent-stabilized vacancy lease at a rent of $1,620 per month. Tenant was later charged the lower rent of $1,350 and was offered rent-stabilized renewal leases. Landlord's failure to file annual rent registrations from 2007-2009 wasn't part of a fraudulent scheme to deregulate the apartment, because registrations were filed in the following years and matched tenant's lease rents. The reduction in tenant's rent after the vacancy lease also didn't show fraud but reflected a reduction in rent based on rent reduction orders. Most of all, it is hard to claim fraud when landlord waived a higher rent by charging a lower rent. 

Mitchell: DHCR Adm. Rev. Docket No. ET410081RT (7/14/17) [6-pg. doc.]