Rent Freeze Resulted from Prior Rent Reduction Order

Rent-stabilized tenant complained to the DHCR of rent overcharge in July 2019. She claimed that landlord had increased her rent without a renewal lease. Landlord claimed that tenant had refused to sign a renewal lease and that she moved out in 2019.

The DRA ruled for tenant. The base date for the overcharge ruling was June 14, 2015, the earliest base date permitted under the HSTPA. While the legal regulated base date rent was $1,056, the collectible rent was $625 because the apartment had been reduced by a prior service/rent reduction order and remained frozen. The rent also was frozen because landlord also had failed to file annual apartment registrations since 2015. Tenant had been a month-to-month tenant from July 1, 2015, through February 2019. Landlord was ordered to refund $15,370, including interest and triple damages, and minus outstanding rent arrears.

Landlord appealed and lost. Landlord claimed that tenant had refused to rent her lease. But there was no proof of this and, even if true, landlord's remedy was to commence an eviction proceeding based on tenant's failure to renew. Landlord also claimed that it had performed major capital improvements to the building. But no MCI rent increase can be collected without approval of an application filed with the DHCR. Triple damages were properly assessed since landlord failed to rebut the presumption of willful rent overcharge.

Nobrega: DHCR Adm. Rev. Docket No. MP210010RO (12/27/24)[3-pg. document]