Untimely Fair Market Rent Appeal Converted to Rent Overcharge Proceeding

Rent-stabilized tenant filed a fair market rent appeal with the DHCR in 2015. She was the first rent-stabilized tenant after rent control and her initial rent in 2005 was $1,800 per month. Tenant also claimed that the rent charged involved a fraudulent attempt by landlord to deregulate the apartment. The DRA initially dismissed the FMRA because it was filed more than four years after tenant moved into the apartment. But the case was later reconsidered because tenant also had raised rent fraud and the case must be considered as a rent overcharge complaint. On remand, the DRA found that failure to serve the RR-1 initial registration form on tenant wasn't a valid reason to use the default procedure in setting the rent. The base date rent on Nov. 17, 2011, was $1,824.16. The DRA ordered landlord to refund $5,060, including triple damages and interest.

Tenant appealed and lost. Tenant still claimed rent fraud. But there was no evidence of a fraudulent scheme to deregulate the apartment. Tenant's rent increased only $24.16 per month between her initial rent in 2005 and the rent paid in 2011. This increase was far below what landlord would have been entitled to if it had collected legal rent guideline increases during those years. 

Douglas: DHCR Adm. Rev. Docket No. LT210035RT (10/24/23)[4-pg. document]