Tenant Presented No Proof of Fraud

Tenant complained of rent overcharge and claimed that her apartment was improperly deregulated. The DRA ruled for tenant, found she was rent stabilized and ordered landlord to refund $30,386. Tenant appealed and lost. Tenant claimed that landlord committed fraud and that the rent should be further reduced via the DHCR's default method for establishing the base date rent because landlord didn't prove that pre-base date individual apartment improvements (IAIs) were proper. The DHCR disagreed. The DRA investigated pre-base date leases in this case to determine the validity of landlord's claim that tenant paid a preferential rent. Rent Stabilization Code Section 2526.1(a)(2)(viii) permitted this exception to the four-year rule. The DRA found that landlord couldn't prove tenant paid a preferential rent under her vacancy lease. But tenant never raised the issue of fraud in her overcharge complaint or in any of her later responses to landlord's answer. So, the DHCR wouldn't consider the fraud claim raised for the first time on appeal. Tenant's mere allegation that pre-base date IAIs were improper didn't trigger a fraud inquiry. Landlord also had submitted proof of the pre-base date rent increase.

Carter: DHCR Adm. Rev. Docket No. ET210071RT (5/12/17) [5-pg. doc.]