Tenant Claims Fraud in RR-1 Form

Tenant filed a fair market rent appeal in 2009. Tenant moved into the apartment in 2002 at a monthly rent of $4,500. His current payable rent was $4,625, although the lease rent was $5,150. The DRA converted tenant's complaint to a rent overcharge complaint, found a small overcharge, and ordered landlord to refund $590. Tenant appealed and lost. Landlord sent tenant an RR-1 form in 2002. But tenant claimed that the RR-1 was fraudulent because it incorrectly stated that landlord wasn't receiving any tax benefits. Therefore, the 90-day period to file a fair market rent appeal had never expired. Landlord also gave tenant a deregulated lease. The DHCR pointed out that landlord merely misinterpreted the J-51 law, believing that the apartment was subject to high-rent vacancy deregulation. This had been the DHCR's interpretation of the law at that time. There was no proof of any fraud.

Appleson: DHCR Adm. Rev. Docket No. ZC410004RT (9/20/11) [7-pg. doc.]