Landlord Complied with TPU Audit

DHCR’s Tenant Protection Unit (TPU) started an Individual Apartment Improvement (IAI) audit for an apartment based on a review of annual rent registration data. TPU asked landlord to submit proof justifying the costs of IAIs that resulted in a substantial rent increase to the apartment in 2011. In September 2015, the TPU sent landlord a Final Notice of Audit Determination, finding that there was some overcharge and directing landlord to reduce the rent for the current tenant. Later that month, the DRA opened an overcharge case after the matter was referred from TPU based on landlord’s failure to reduce the rent. Landlord showed the DRA that it had complied with the TPU’s determination and the DRA dismissed the overcharge complaint.

Former tenant appealed and lost. Former tenant had lived in the apartment when the TPU started its audit. But she moved out and didn’t respond to the TPU’s notices. So landlord properly reduced the rent of the tenant in occupancy when directed to do so by the TPU. Former tenant could still file an overcharge complaint with the DHCR if she believed that she paid rent in excess of the legal regulated rent. 

Mensah: DHCR Adm. Rev. Docket No. EM410024RT (6/24/16) [5-pg. doc.]