Tenant Can't Claim Fraud Based on IAI Increase Collected 20 Years Ago

(Decision submitted by David B. Cabrera of the Manhattan law firm of Borah, Goldstein, Altschuler, Nahins & Goidel, P.C., attorneys for the landlord.)

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund a total overcharge of $138. Tenant appealed and lost. Tenant claimed that there was fraud that invalidated her base date rent of $1,760. But the DHCR found no reason to examine the rent history prior to the Aug. 17, 2008, base rent date. Tenant claimed that her initial 1994 rent was improper and based on unsubstantiated apartment improvements. But the DHCR is not now required to investigate the 1994 rent increase because, under the four-year rule as it was applied by the DHCR and landlords at the time, landlord wasn't required to keep rent records beyond 1998 that may have supported that rent increase. Landlord's claim of a rent increase for improvements made 20 years ago is not a per se violation of the Rent Stabilization Law and Code evidencing a fraudulent act.

Stuart: DHCR Adm. Rev. Docket No. BT210038RT (10/2/14) [2-pg. doc.]