Four-Year Rule Applied to Tenant's Overcharge Claim

Tenant complained of rent overcharge. The DRA ruled against tenant, who appealed and won in part. Although the DRA found that there was no legal regulated rent higher than the $1,450 “preferential” rent charged on the base rent date, there was no overcharge found when the preferential rent was treated as the legal rent. Tenant argued in her PAR that the DRA failed to determine whether her vacancy lease rent was lawful. In Boyd v. DHCR (2013), New York’s highest court said that the DRA had to consider whether the rent in the initial lease was proper when determining if there was an overcharge on subsequent renewal leases. But the DHCR found that the DRA properly found that the base rent was $1,450, and there was no proof of a fraudulent scheme to deregulate the apartment that rendered the base date rent unreliable. So tenant’s challenge to pre-base date apartment renovations wasn’t subject to review. However, the DRA erred in finding tenant’s renewal leases were for two-year terms. Tenant in fact had four one-year renewal leases, and there was a total overcharge of $296, including interest.

Zamora-Hegg: DHCR Adm. Rev. Docket No. EQ210026RT (10/24/16) [7-pg. doc.]