No Proof of High-Rent Deregulation on Base Date

Tenant complained of a rent overcharge. Landlord claimed that tenant wasn't rent stabilized, because the legal rent when tenant moved into the apartment in June 2003 was $2,000 per month or more. The DRA ruled against tenant, finding that the apartment was deregulated. Tenant appealed. Landlord had claimed that the base date rent in May 2003, four years before tenant complained, was $1,670. Applying a 20 percent vacancy allowance, tenant's legal rent was over $2,000. But landlord charged tenant only $1,600 per month, and tenant's initial lease contained no rider or other language notifying tenant that his apartment was deregulated based on high-rent vacancy. In addition, prior tenant didn't actually pay $1,670. He paid $1,605 and then moved out in May 2002. On the base date in May 2003, the apartment was vacant, and landlord registered it in April 2003 at $1,670. When an apartment is vacant on the base date, the next rent is the legal regulated rent. Since tenant paid $1,600 and there was no deregulation notice, the base date rent was $1,600 and was rent stabilized. The DHCR sent the case back to the DRA to determine if there was actually any overcharge.

Chowdhury: DHCR Adm. Rev. Docket No. V410028RT (12/6/07) [3-pg. doc.]