Default Formula Applied Where Landlord Submitted No Proof of Base Date Rent

September 29, 2016

LVT Number: #27235

Tenant complained of rent overcharge. He moved into the apartment in February 2013 at a vacancy rent of $1,800. Landlord claimed that the apartment was deregulated, that the legal rent was $3,425, and that tenant paid a preferential rent. The DRA requested, but landlord didn’t produce, the base date lease for the apartment. The DRA ruled for tenant and ordered landlord to refund $45,000, including triple damages. Landlord appealed and lost. The DRA correctly used default formula #1 to reduce and freeze tenant’s rent at $873.

Tenant complained of rent overcharge. He moved into the apartment in February 2013 at a vacancy rent of $1,800. Landlord claimed that the apartment was deregulated, that the legal rent was $3,425, and that tenant paid a preferential rent. The DRA requested, but landlord didn’t produce, the base date lease for the apartment. The DRA ruled for tenant and ordered landlord to refund $45,000, including triple damages. Landlord appealed and lost. The DRA correctly used default formula #1 to reduce and freeze tenant’s rent at $873. Landlord’s failure to provide a complete rent history also warranted imposition of triple damages for willful rent overcharge. The DHCR also refused to consider the base date rent ledger that landlord submitted for the first time with its PAR.

 

 

Lang Development Corp.: DHCR Adm. Rev. Docket No. EO210057RO (7/27/16) [4-pg. doc.]

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