Overcharge Found Based on Outstanding Rent Reduction Order

In 2011, the DHCR started an Administrative Investigation Proceeding (AIP) and sent landlord a Notice of Commencement of Proceeding to Determine Whether the Owner Has Collected an Overcharge Above the Legal Regulated Rent (NCP).  After investigation, the DRA found that tenant had been overcharged because landlord never obtained rent restoration orders following at least one rent reduction order that affected tenant's rent. The DRA froze tenant's rent to the amount resulting from the rent reduction effective Nov. 1, 2007, which was four years before the AIP was initiated. Landlord was ordered to refund $7,536. Landlord appealed and lost. Landlord argued that the overcharge finding was based on a seventh rent reduction order that the DHCR didn't mention in the NCP. But the DRA did specify the seventh rent reduction order in its final notice to landlord before the overcharge determination was issued. And landlord was responsible for maintaining its own records of any DHCR rent reduction orders for the building.

Parkash: DHCR Adm. Rev. Docket No. BQ610032RO (9/5/14) [4-pg. doc.]