No Rent Overcharge Found Due to Preferential Rent Paid

Rent-stabilized tenant complained to the DHCR of a rent overcharge. The DRA ruled against tenant, who appealed and won in part. Tenant argued that the DHCR should look back beyond the four-year base date due to fraud by landlord. The DHCR found no indication of fraud, but ruled that the DRA incorrectly set the base date rent at $1,374 because the purported base date lease presented by landlord and dated Sept. 1, 2014, was invalid. Tenant showed that the prior two-year renewal lease ran from July 1, 2013, to June 30, 2015, and was still in effect, so that another renewal dated Sept. 1, 2014, couldn't be valid. And the prior landlord's widow, who signed the July 1, 2013, renewal lease, was still the owner in 2014 and her signature wasn't on the purported Sept. 1, 2014, renewal lease. Tenant also denied signing that lease. The legal base date rent was $1,300. But, while the DHCR's decision resulted in a reduction in the legal regulated rent, tenant was charged a lower preferential rent, so there was still no overcharge. 

Elkount: DHCR Adm. Rev. Docket No. KP210030RT (7/25/22)[4-pg. document]