DHCR Used Proper Base Date

LVT Number: 13797

Tenant complained of a rent overcharge in 1986. He claimed that the rent was registered in the name of an illusory tenant. The DHCR treated tenant's complaint as a challenge to the initial rent registration. The DHCR ruled for tenant and imposed triple damages against landlord for a willful overcharge. Landlord appealed, claiming that DHCR improperly used a 1982 base date instead of April 1, 1984. The court ruled against landlord. The DHCR reasonably found that landlord registered the April 1, 1984 rent in the name of an illusory corporate tenant.

Tenant complained of a rent overcharge in 1986. He claimed that the rent was registered in the name of an illusory tenant. The DHCR treated tenant's complaint as a challenge to the initial rent registration. The DHCR ruled for tenant and imposed triple damages against landlord for a willful overcharge. Landlord appealed, claiming that DHCR improperly used a 1982 base date instead of April 1, 1984. The court ruled against landlord. The DHCR reasonably found that landlord registered the April 1, 1984 rent in the name of an illusory corporate tenant. The corporate principal was also the landlord. Since the rent registered in 1984 was illusory, it was proper to treat tenant's 1986 complaint as a challenge to the initial rent registration and to use a 1982 base date.

Hwang v. DHCR: NYLJ, p. 34, col. 4 (12/1/99) (Sup. Ct. NY; Polizzi, J)