DRA Improperly Reduced Rent for Failure to Register

January 1, 1997

LVT Number: 11191

Tenants complained of a rent overcharge. The DRA ruled for tenants based on landlord's failure to register the apartment. Landlord appealed. The DHCR ruled for landlord. When landlord rented the apartment to tenants, he was entitled under tenant protection regulations to set a fair market rent. The DRA improperly reduced the fair market rent by a rent guideline increase. There is no provision for such rent reduction based on landlord's failure to register the apartment. The only lawful penalty is a rent freeze until landlord files a late registration statement.

Tenants complained of a rent overcharge. The DRA ruled for tenants based on landlord's failure to register the apartment. Landlord appealed. The DHCR ruled for landlord. When landlord rented the apartment to tenants, he was entitled under tenant protection regulations to set a fair market rent. The DRA improperly reduced the fair market rent by a rent guideline increase. There is no provision for such rent reduction based on landlord's failure to register the apartment. The only lawful penalty is a rent freeze until landlord files a late registration statement. There was no overcharge in this case.

Harding/Engel: DHCR Adm. Rev. Dckt. Nos. FC810088RT, JI910002RP (11/15/96) [3-page document]

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