Four-Year Base Date Applied Where No Proof of Landlord Fraud

LVT Number: #25061

Rent-stabilized tenant complained of rent overcharge. The DHCR ruled against tenant, finding no overcharge. Tenant filed an Article 78 court appeal, claiming that the DHCR's decision was arbitrary and unreasonable. The court and appeals court ruled against tenant. Tenant claimed that landlord committed fraud in setting the initial legal regulated rent of $1,200 for the apartment. But the DHCR properly determined that July 17, 2005, was the base date for determining any overcharge. This date was four years prior to the filing date of tenant's overcharge complaint.

Rent-stabilized tenant complained of rent overcharge. The DHCR ruled against tenant, finding no overcharge. Tenant filed an Article 78 court appeal, claiming that the DHCR's decision was arbitrary and unreasonable. The court and appeals court ruled against tenant. Tenant claimed that landlord committed fraud in setting the initial legal regulated rent of $1,200 for the apartment. But the DHCR properly determined that July 17, 2005, was the base date for determining any overcharge. This date was four years prior to the filing date of tenant's overcharge complaint. And there was no merit to tenant's claim of fraud. The DHCR wasn't required to conduct a trial-type hearing, and its decision was rational.

Watson v. DHCR: 971 NYS2d 145, 2013 NY Slip Op 05828 (App. Div. 2 Dept.; 9/11/13; Angiolillo, JP, Chamgers, Sgroi, Cohen, JJ)