DHCR Won't Accept Rent Records Submitted for the First Time with PAR

Rent-stabilized tenant complained of rent overcharge in 2013. The DRA ruled for tenant and ordered landlord to refund an overcharge. The DRA ruled for tenant because landlord failed to produce rent history records proving the base date rent. Landlord claimed that the base date rent was preferential but didn't submit any records showing that there was a higher legal regulated rent in any lease on the base date. So the DRA established the base date rent using the Rent Stabilization Code default method.

Landlord appealed and lost. With its PAR, landlord submitted the last lease in effect before tenant moved into the apartment. That lease showed a monthly rent of $1,825. Landlord argued that the complaining tenant's initial rent of $1,025 therefore couldn't be an overcharge. The DHCR wouldn't accept the lease submitted for the first time on appeal. RSC Section 2529.6 states that administrative review is limited to facts and evidence presented to the DRA unless the appealing party shows that the proof couldn't have been offered or included before the DRA. Landlord also registered the apartment as vacant for the time period it now claimed it had a lease for.

110-116 Terrace View Ave Inc.: DHCR Adm. Rev. Docket No. IS410059RK (3/30/21) [2-pg. doc.]