No Rent Overcharge Even Though Apartment Had Been Improperly Deregulated

Tenant complained of rent overcharge and improper vacancy deregulation of his apartment while the building received J-51 tax benefits. Landlord admitted that the apartment was rent stabilized and offered tenant a rent-stabilized renewal lease. Landlord claimed that there was no rent overcharge. The DRA ruled against tenant, who appealed and lost. The DHCR found that the apartment was rent stabilized, that the base date rent on April 23, 2011, was $2,550 per month, and rent increases after that date were lawful. Prior landlord had received J-51 tax benefits between July 1, 2000, and June 30, 2011. The DHCR found no indication of a fraudulent scheme to deregulate the apartment. Former landlord gave tenant a deregulated lease in 2009 based on DHCR policy in effect at that time, before New York's highest court ruled to the contrary in the Roberts case later that year. Prior landlord filed an exit registration with the DHCR in 2002. The fact that the apartment wasn't registered with the DHCR prior to 2011 also was insufficient to prove fraud, and the DRA reasonably directed landlord to file missing registrations from the base date forward because the apartment was rent stabilized. And, based on the last rent-stabilized rent of $1,789 in 2001 and bridging the gap up to the base date, the rent charged to tenant was legal. 

Newman: DHCR Adm. Rev. Docket No. FQ410025RT (7/18/18) [5-pg. doc.]