Substantial Rent Increase Didn't Prove Fraud by Landlord

Rent-stabilized tenant complained of rent overcharge. The DRA ruled against tenant, finding no overcharge. Tenant appealed and won, in part. Tenant claimed landlord fraud because the apartment rent increased from $313 in 2007 to $2,100 in 2011. And tenant claimed that the apartment rent should have been frozen under a 2003 building-wide rent reduction order. The DHCR noted that the rent reduction order didn't include tenant's apartment, so no rent freeze applied. And tenant didn't raise a fraud claim before the DRA. Even if she did, one rent increase from $313 to $2,100 wasn't sufficient proof of a fraudulent scheme by landlord. Landlord's settlement of rent overcharge claims with other tenants also didn't show fraud. And landlord had registered tenant's apartment as rent stabilized since the base rent date. However, the DRA mistakenly allowed a rent increase for a renewal term when tenant and landlord didn't sign the renewal lease. So landlord must refund $1,348, including interest, representing a $42 per month rent increase for the renewal period starting Feb. 1, 2014. [Download PDF of decision here.]

Garcia: DHCR Adm. Rev. Docket No. FO410061RT (11/15/17) [3-pg. doc.]