No Overcharge Where Tenant Paid Preferential Rent

Rent-stabilized tenant complained of rent overcharge. The DRA ruled against tenant, finding no overcharge. Tenant appealed and lost. Tenant paid a monthly preferential rent at all times that was lower than the legal regulated rent. So there could have been no overcharge. The legal regulated rent was over $2,000 per month but remained rent stabilized since the building received J-51 tax benefits. Landlord acknowledged this by offering tenant rent-stabilized leases and registering both the legal regulated rents and preferential rents. The legal regulated rent listed on the leases also was correct at all times since the base rent date. And landlord amended the 2012 rent registration that mistakenly listed the apartment as vacant.

Reardon: DHCR Adm. Rev. Docket No. CQ210027RT (3/9/15) [3-pg. doc.]