Rent Overcharge Resulted from Landlord's Reliance on Deemed Leases

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant, finding that the base date rent was $1,392 and that landlord was responsible for overcharges plus interest totalling $15,610. Landlord hadn't produced a base date lease. The DRA found that the overcharge wasn't willful because it resulted entirely from landlord's failure to execute the base date lease and subsequent renewal leases.

Landlord appealed, claiming that there was no overcharge. In January 2020, the DHCR sent the case back to the DRA for a new ruling to apply provisions of HSTPA enacted while landlord's PAR was pending. But in August 2020, the DHCR rescinded its remand order because New York's highest court had ruled in Regina Metropolitan v. DHCR that HSTPA rent overcharge provisions couldn't be applied retroactively.

The DHCR then ruled against landlord. Landlord claimed that tenant had deemed leases. But Rent Stabilization Code Section 2523.5(c)(2) was amended in January 2014 to largely do away with deemed leases. 

Bajraktari Realty Mgmt. Corp.: DHCR Adm. Rev. Docket No. IS610077RK (10/29/20) [6-pg. doc.]