Landlord Didn't Raise Judicial Sale Claim Before the DRA

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant, used the default method based on an incomplete rent history, and ordered landlord to refund $30,450, including triple damages. Landlord appealed and lost. Landlord pointed out that it had purchased the building after a judicial sale and therefore shouldn't be responsible for overcharges it didn’t collect or be subject to triple damages. But landlord didn’t submit the referee’s deed it now relied on to the DRA and didn’t raise the judicial sale or foreclosure argument before the DRA. Landlord also didn’t submit any reasonable excuse for failing to raise this issue before the DRA, and the DHCR couldn’t consider new evidence on appeal. The DRA correctly applied the default formula because landlord didn’t submit proof of the base date rent in the form of either a lease or rent ledger. 

W 1881 LLC: DHCR Adm. Rev. Docket No. ER110006RO (11/29/16) [6-pg. doc.]