Tenant Can't Claim Rent Fraud for the First Time on Appeal

Tenant claimed that she was rent stabilized and complained of rent overcharge in 2018. The DRA ruled against tenant, finding that the apartment had been vacancy deregulated in 2006. Tenant appealed and lost. In response to the DRA's request, landlord submitted rent history records including the last rent-stabilized lease prior to the 2006 deregulation and the first deregulated lease given to the next tenant with a legal regulated rent over $2,000 per month. Tenant argued for the first time in her PAR that landlord had fraudulently deregulated the apartment. But the DHCR couldn't consider arguments raised for the first time on appeal. And, even if it did so, tenant's mere allegation of fraud, without more, wasn't sufficient to require the DHCR to investigate rents beyond the base date. Tenant merely speculated that an 18-year-old rent increase from 2003 tainted subsequent rents. Tenant also misinterpreted rent guidelines permitted under RGBO No. 35. Since there was a market-rate lease in effect on the base date, the DRA properly considered pre-base date rental events, dating back to 2004, to confirm the validity of the 2006 deregulation. Tenant's complaint was properly dismissed.

Murray: DHCR Adm. Rev. Docket No. GX410045RT (4/15/21) [7-pg. doc.]