Con Ed Records Proved Apartment Was Vacant on Base Date

Rent-stabilized tenant complained of rent overcharge. The DRA ruled against tenant, who appealed and lost. Tenant pointed out that the DRA had sent landlord a final notice of imposition of triple damages, which stated that a proposed total overcharge was $125,000 based on the DHCR's default method. But that notice wasn't an order, and was subject to change based on additional evidence. Landlord had argued that the apartment was vacant on the base rent date. Landlord submitted records subpoenaed from Con Edison that indicated that there was no customer of record for the apartment on the base date. The DRA properly applied Rent Stabilization Code Section 2526.1(a)(3)(i) and (iii), in effect before Jan. 8, 2014, to this case, which provided that if an apartment was vacant on the base rent date, the rent paid by the first subsequent stabilized tenant is the legal regulated rent. There was no reason for the DHCR to apply a default formula, and there was no overcharge.

Arias: DHCR Adm. Rev. Docket No. BW410021RT (7/22/14) [3-pg. doc.]