No Proof of Fraud in Overcharge Case

Rent-stabilized tenant complained of rent overcharge. She paid $900 per month under a vacancy lease in 2002. Tenant complained in 2013 aft her rent increased to $1,334. The DRA ruled against tenant, finding no overcharge. Tenant's rent was $1,218 on the 2009 base rent date, and rent guidelines increases collected since then were proper. Tenant appealed and lost. Tenant now claimed fraud because the apartment rent increased 60 percent, from $677 in 2001 to $1,094 in 2002. But tenant didn't claim fraud, or submit any proof of fraud, in her initial complaint to the DRA. The DHCR refused to consider tenant's fraud claim on appeal. And, even if it did so, landlord applied legal rent increases to all rents collected after the base rent date. There was no proof that the base date rent was unreliable. And a mere increase in rent alone before the base rent date didn't indicate fraud.

Rosa: DHCR Adm. Rev. Docket No. CM210013RT (11/3/14) [4-pg. doc.]