Preferential Rent Subject to Rent Freeze

Tenant complained of a rent overcharge. The DRA ruled for tenant, and imposed triple damages for willful overcharge. Landlord appealed, claiming that the DRA had improperly calculated the overcharge. He also claimed that the overcharge wasn't willful. The DHCR ruled for landlord in part. The DRA had frozen tenant's rent at the amount collected on the base date under a prior rent reduction order. This amount was $650 and was the amount of a preferential rent paid by tenant. Landlord argued that the base date rent that should be used was $742, which was the legal regulated rent. No rent increases can be collected after the effective date of a rent reduction order until a rent restoration order has been issued. So tenant's rent was properly frozen at the preferential rent collected on the effective date of the rent reduction order. Landlord was understandably confused about the amount of legal collectible rent. So the DHCR revoked the triple damages.

Cheng: DHCR Adm. Rev. Dckt. No. TA110007RO (2/2/05) [5-pg. doc.]