Tenant's Monthly Rent Charged Was Less than $2,000

Tenant complained of a rent overcharge. Her initial rent in 2004 was $1,375. Landlord claimed that this was a preferential rent and that the legal rent was actually over $2,000 per month, so the apartment was deregulated. The DRA ruled for tenant, finding that the legal rent was $1,225. There was an overcharge of $4430. Landlord appealed. The DHCR ruled for landlord in part. The apartment wasn't deregulated. A review of the four-year rent history showed that the base rent was $990 because this was the first rent charged after the base date on which the apartment was vacant. But the DRA had improperly calculated legal rent increases. The legal, registered rent for prior tenant was higher than the rent charged prior tenant. So when the rent history was recalculated, there was no overcharge.

Farage: DHCR Adm. Rev. Dckt. No. TJ310026RO (1/17/06) [7-pg. doc.]