Incorrect Default Procedure Applied

Tenant complained of a rent overcharge. The DRA ruled for tenant based on landlord's default. The DRA found that landlord didn't submit a complete rent history. The DRA reduced tenant's rent to the lowest amount of rent paid for the same-size apartment in the building. Landlord appealed, showing that the lowest rent used was a rent granted under a sweetheart lease. The DHCR ruled for landlord. Since the lowest rent was a preferential rent set below the lawful stabilization level, the second lowest rent for the same-size apartment in the building should have been used instead to calculate the legal rent for tenant's apartment. So, the overcharge amount was reduced.

65-15 Alderton Street, Apt. 2D: DHCR Adm. Rev. Dckt. No. BI 110060-RO (8/3/93) [4-page document]