Transient SRO Tenant Not Notified of Right to Become Permanent Tenant

Rent-stabilized SRO tenant complained of rent overcharge. The DRA found no overcharge, but ruled that the tenant had been transient but became a permanent tenant on Jan. 8, 2004. Because landlord didn't submit a rent ledger or leases in effect on the Feb. 27, 2004 base date, the legal regulated rents for tenant's room was $300 per month. Landlord appealed, and the case was reopened. Landlord claimed that if tenant was rent stabilized, the legal regulated rent should be $2,250. Landlord argued that the building had been deregulated due to a substantial rehabilitation before tenant moved in. But tenant pointed out that landlord didn't present him with the required written notice of his right to become a rent-stabilized tenant, that landlord posted signs unlawfully announcing that tenants couldn't occupy their rooms for more than two weeks, and that on the day tenant requested a rent-stabilized lease, he was evicted by the police and later restored to possession by a judge. Tenant's claims were sufficient to warrant an investigation for fraud and use of the DHCR's default method in setting tenant's rent when the DRA reconsidered the case.

Bayridge Prince, LLC: DHCR Adm. Rev. Docket No. ZC210030RO (6/3/13) [2-pg. doc.]