Complaint Improperly Converted to Fair Market Rent Appeal

Tenant complained of a rent overcharge. Landlord claimed that tenant's apartment had been totally renovated before tenant moved in, entitling landlord to collect a substantial rent increase. The DRA then converted tenant's complaint to a fair market rent appeal. The DRA found that the initial stabilized rent of the apartment was lawful but that landlord collected some excess rent thereafter. Tenant appealed, arguing that the DRA had improperly converted the rent overcharge proceeding to a fair market rent appeal. The DHCR ruled for tenant. The DRA has the authority to do so but under DHCR policy shouldn't unless tenant is either the first stabilized tenant or there is some indication that tenant is challenging the initial stabilized rent. Tenant here had stated that he believed he was entitled to the last rent-controlled tenant's rent level because landlord didn't prove service of the RR-1 form registering the apartment. The DHCR found there was a willful rent overcharge and assessed triple damages.

Atkins: DHCR Adm. Rev. Dckt. No. IK 410058 RT (4/25/95) [5-page document]