Rent Overcharge Complaint Converted to Fair Market Rent Appeal

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $65,000, including triple damages. Landlord appealed, and the case was reopened. The DRA then found that tenant was the first rent-stabilized tenant of the apartment, converted the complaint to a fair market rent appeal, and ruled that tenant's initial monthly rent of $1,700 was the fair market rent. This rent included a rent increase of $1,010 per month based on individual apartment improvements costing $40,000.

Tenant appealed and lost. She claimed that the DRA didn't give her proper notice of the new proceeding and improperly considered new evidence from landlord. But the DRA notified tenant that the case was being reconsidered. And landlord had advised the DHCR that it didn't know that prior tenant was rent controlled when tenant initially filed her complaint. Records received from prior landlord had shown that prior landlord gave prior tenant a rent-stabilized lease. But landlord had discovered proof that prior tenant was rent controlled by succession. Landlord also proved the cost of the apartment improvements.

Espinoza: DHCR Adm. Rev. Docket No. ZB410037RT (12/11/13) [7-pg. doc.]