Landlord Mistakenly Calculated Lower MBR

Rent-controlled tenant complained of a rent overcharge. The DRA ruled against tenant and found that the apartment's maximum rent was $451.88 as of Jan. 1, 2001. Tenant appealed, claiming that landlord had been charging less than the maximum rent and so was bound to continue doing so. The DHCR ruled against tenant. Landlord had calculated the MBR in an amount substantially less than the correct amount noted in the DRA's rent history calculation. So the apartment's maximum rent, as calculated by landlord, reached the MBR ceiling at a lesser amount than it would have if landlord had calculated it correctly. If landlord had charged less than the maximum rent, landlord could still charge the proper maximum rent prospectively. If there were any questions about the collection of back rent, that issue must be raised in court.

Jennings: DHCR Admin. Rev. Dckt. No. QB420035RT (4/23/02) [4-pg. doc.]