Court Finds No Preferential Rent Agreement

January 7, 2010

LVT Number: #22393

Tenant complained of a rent overcharge. Landlord claimed that tenant paid a preferential rent that landlord was permitted to discontinue. The DHCR ruled for landlord. Tenant appealed. The initial court found that the DHCR's decision was reasonable, but the appeals court ruled for tenant. Tenant's 1994 lease showed that the rent charged was the legal regulated rent. There was no preferential rent agreement, so there was no higher rent that could be used for tenant's 2002 and 2004 renewal lease increases. The case was sent back to the DHCR to recalculate the legal rent.

Tenant complained of a rent overcharge. Landlord claimed that tenant paid a preferential rent that landlord was permitted to discontinue. The DHCR ruled for landlord. Tenant appealed. The initial court found that the DHCR's decision was reasonable, but the appeals court ruled for tenant. Tenant's 1994 lease showed that the rent charged was the legal regulated rent. There was no preferential rent agreement, so there was no higher rent that could be used for tenant's 2002 and 2004 renewal lease increases. The case was sent back to the DHCR to recalculate the legal rent. The DHCR then found that the overcharge was willful and ordered landlord to refund $33,000, including triple damages.

Coffina: DHCR Adm. Rev. Docket No. XE410009RP (11/18/09) [3-pg. doc.]

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