No Proof of Fraud by Landlord

Rent-stabilized tenant complained of rent overcharge. The DRA ruled against tenant, finding no overcharge. The base rent date was May 8, 2008. Tenant was rent stabilized based on J-51 benefits and paid $7,422 on the base date. Tenant actually paid less than the legal rent. Tenant appealed and lost. Tenant claimed that the base rent date should be earlier--four years before landlord commenced a nonpayment proceeding against tenant in housing court. But, in that case, the court directed landlord and tenant to resolve any issue as to the legal regulated rent before the DHCR. The court didn't reserve a base date or direct the DHCR to use a certain base date.  Landlord properly calculated renewal increases between 2008 and 2012. Tenant refused to renew his lease in 2009 and 2010. There was no proof of owner fraud. When tenant moved into the building in 2003, before the Roberts case was decided by New York's highest court, landlord had a reasonable belief based on DHCR policy that the apartment was deregulated. Landlord never denied receipt of J-51 tax benefits and had registered the apartment as rent stabilized at all times since the Roberts decision. Tenant presented no evidence of any fraudulent scheme. Landlord had registered the apartment as exempt during a prior period when the unit was occupied by a nonprofit corporation, and there was no attempt to conceal any rental events.

Schnitzer: DHCR Adm. Rev. Docket No. BX410032RT (12/2/14) [6-pg. doc.]