Tenant Waited Until PAR Filing to Seek Attorney's Fees

Tenant complained of improper apartment deregulation and rent overcharge. Tenant moved into the apartment in 2012 at an initial rent of $2,100 per month. The building was subject to a J-51 tax benefit from July 1, 2003, to June 30, 2017. Landlord pointed out that the DHCR had issued a high-rent/high-income deregulation order for the apartment in 2006, before the building received the J-51 benefits.

The DRA ruled for tenant and ordered landlord to refund $38,800, including triple damages and interest. The DRA also ruled that, since landlord didn't give tenant J-51 lease riders notifying tenant when the building's J-51 status would end, tenant remained rent stabilized after the J-51 benefits expired.

Tenant appealed and lost. Tenant claimed that the DHCR should recalculate the rent using the last reliable registered rent-stabilized rent of $354 per month and applying the default formula. Tenant also sought attorney's fees.

The DHCR ruled against tenant. The DRA properly relied on the agency's 2006 deregulation order when setting the base date rent. And the DHCR had already determined that there was no fraud. The 2020 Court of Appeals decision in Regina Metro. v. DHCR also barred examination of the rental history for the purpose of "reconstructing" what the base date rent should have been. Tenant also wasn't entitled to attorney's fees in this matter. Under the scope of review doctrine, tenant was barred from requesting attorney's fees for the first time in his PAR. The DHCR also denied landlord's appeal of the DRA's order [see LVT #31804].

308 West 49 LLC/Klein/Pazmino: DHCR Adm. Rev. Docket Nos. JP410059RT, JQ410004RO (12/29/21)[8-pg. document]