DHCR Properly Used Special Guidelines to Set Rent

Tenant complained of a rent overcharge in a complaint filed before April 1, 1984. Since tenant was the apartment's first rent-stabilized tenant in 1979, the complaint was converted to a fair market rent appeal. Landlord submitted no proof of having served tenant a DC-2 notice of the initial legal regulated rent, and never responded to various DHCR requests for comparability data. The DHCR ruled for tenant, reduced the 1979 rent from $450 to $240, and ordered landlord to refund $25,000 to tenant. Landlord appealed, claiming that the DHCR should use its own records to compile comparability data. The appeals court ruled for DHCR and dismissed landlord's appeal. DHCR isn't required to do landlord's work by assembling the necessary proof of comparable rents. The DHCR was also reasonable in ruling that landlord defaulted with regard to comparability data. The DHCR sent landlord several notices in different years advising landlord of this opportunity.

Powers Assocs. v. DHCR: NYLJ, p. 25, col. 1 (7/29/96) (App. Div. 1 Dept.; Murphy, PJ, Sullivan, Rosenberger, Nardelli, Tom, JJ)