Although Apartment Was Improperly Deregulated, There Was No Rent Overcharge

Tenants complained of rent overcharge and improper deregulation of their apartment. The DRA ruled that the apartment had been improperly deregulated but that there was no overcharge. Tenants appealed and lost. Tenants claimed that there was fraudulent behavior by landlord in connection with its receipt of J-51 tax benefits, as well as willful overcharge resulting from collection of a free market rent. But the rent collected on the base date was $1,900 per month, tenants' legal regulated rent was $2,000, the collectible rent was waived down because tenants were charged less under their vacancy lease, and tenants paid $1,200 per month under a prior court order. There was insufficient indication of fraud, and J-51 benefits weren't at issue. 

Toczko: DHCR Adm. Rev. Docket No. GS410033RT (7/12/19) [2-pg. doc.]