No Proof of Fraud or Rent Overcharge to Rent-Stabilized Tenant

Tenant complained of rent overcharge. The DRA ruled against tenant, finding no rent overcharge. Tenant appealed and lost. Tenant claimed that landlord committed fraud to deregulate the apartment. But the DHCR found that landlord didn't deny that the apartment was rent stabilized due to its receipt of J-51 tax benefits. Landlord always offered tenant rent-stabilized leases, and had increased the rent within the percentages mandated by the Rent Guidelines Board. The fact that landlord didn't offer tenant a rent-stabilized lease rider didn't invalidate tenant's lease and wasn't, by itself, proof of fraud. Landlord also always registered the apartment as rent stabilized and registrations were filed contemporaneously with leases reflected in the registrations. The fact that landlord may not have sent copies of the registrations to tenant didn't invalidate the rents and wasn't, by itself, proof of fraud. Landlord also submitted sufficient proof of pre-base date individual apartment improvements and a longevity increase. [Download PDF of decision here.]

Reibstein: DHCR Adm. Rev. Docket No. FM410057RT (10/17/17) [4-pg. doc.]