Tenant Didn't Have to Prove Rent Paid in Overcharge Claim Filed by TPU

The DHCR's Tenant Protection Unit (TPU) filed a rent overcharge complaint with the DRA after auditing claimed individual apartment improvements (IAIs). New landlord claimed that the apartment was vacant in August 2017 when it bought the building. Prior landlord gut renovated 15 of the building's 20 apartments, including the subject apartment, and claimed that it paid close to $1 million for the work. The DRA found there was an overcharge due to landlord's failure to timely restore the rent that had been reduced by a rent reduction order. The DRA found that the base date legal regulated rent was $1,175 but that the collectible rent was $126.45. The rent remained frozen until landlord obtained a rent restoration order in 2020. The total overcharge, with triple damages and interest, was $56,521.

Landlord appealed and lost. Landlord claimed that there was no proof that the overcharge was collected. The DHCR found that the agency initiated the complaint and "tenant production of records of rent payments is not an issue." Landlord produced no proof for the DRA concerning what rent was collected or that tenant didn't pay the $2,700 rent listed in his lease.  

197 Madison Holdings LLC: DHCR Adm. Rev. Docket No. JW410013RO (12/8/21)[7-pg. document]