Prior Tenant Was Charged a Preferential Rent

Tenant complained of a rent overcharge. The DRA ruled for tenant, and landlord appealed. Prior tenant paid $250 for a number of years before tenant moved in, paying $1,000. But prior tenant was unquestionably prior landlord's family member and was paying a preferential rent. Prior landlord should have registered prior tenant's rent as preferential, but this didn't bar the DHCR from finding that the rent was preferential. When the legal rent was calculated under deemed leases for the entire period that prior tenant lived in the apartment, it was clear that landlord didn't overcharge tenant.

Korhans Co./Polizzi: DHCR Adm. Rev. Dckt. Nos. KE410120RO and KE410130RT (2/15/01) [4-pg. doc.]