Tenant's Fraud Claim Unsupported by Any Proof of Improper Deregulation

Tenant complained of rent overcharge. The DRA found no overcharge since the base rent date and dismissed the complaint. Tenant appealed and lost. Tenant requested a hearing and claimed that landlord engaged in a fraudulent scheme to deregulate the apartment by adding parking fees, sales tax, and other unlawful charges to the legal regulated rent. Tenant also claimed that landlord registered an illusory tenant in 1984, added a vacancy and renewal increase a day apart in 1985, charged renewal increases in excess of legal guidelines, added overlapping Individual Apartment Improvement (IAI) increases to the rent from 1995 to 2000, and added prior tenant’s parking charges and sales tax disguised as an IAI increase to tenant’s vacancy lease. The DHCR noted that no hearing was needed because there was sufficient documentary evidence to decide the case without one. The DHCR also found no indication of fraud that would warrant looking back more than four years at the rent history. Tenant didn’t cite unusually high rent increases, landlord offered rent-stabilized leases, the apartment was registered, and there was never any attempt by landlord to deregulate the apartment. Tenant also couldn’t claim fraud based on landlord’s claimed failure in 1984 and 1985 to register the legal rent or charge illegal rent increases because high-rent vacancy deregulation didn’t exist under the Rent Stabilization Law until Jan. 1, 1994. 

Harley: DHCR Adm. Rev. Docket No. DV610053RT (5/24/16) [7-pg. doc.]