No Overcharge Where Missing Registrations Filed Before Ruling

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $16,828, including interest. Landlord and tenant both appealed. Landlord argued that any overcharge was eliminated when it filed missing rent registrations in 2020, and prior to the issuance of the DRA's order, for years 2013 through 2019. The DHCR agreed that there was no overcharge based on the late registrations and since there was no proof that landlord collected more than the legal registered rents. Tenant claimed that there was owner fraud and the DRA should have looked back more than four years to determine rent overcharge. But the DHCR found no indication of a fraudulent scheme to deregulate the apartment. The unit had been deregulated in accordance with a DHCR order while the building received J-51 tax benefits, but landlord had corrected that and had not subsequently attempted to deregulate the apartment.

Pomp LLC/Blomker: DHCR Adm. Rev. Docket Nos. IX210028RO, JM210007RT (8/12/21)[3-pg. document]