Lower Amount Charged to Subtenant

Subtenant complained of a rent overcharge and illusory tenancy. The DRA found no rent overcharge but ordered landlord to give subtenant a rent-stabilized lease. The DRA also ruled that the legal rent was $700 per month. Landlord appealed, claiming that prior tenant paid higher rent and that subtenant paid lower rent only because this was what the market would bear at the time. Landlord claimed that the rent was lawful because prior tenant had agreed to pay it in a court agreement. The DHCR ruled against landlord. Subtenant wasn't a party to the prior agreement between landlord and prior tenant. And the higher rent wasn't based on the rent history. Landlord could collect only the rent she charged subtenant, who was now rent-stabilized tenant.

Brusco: DHCR Adm. Rev. Dckt. No. KA410100RO (9/12/97) [2-page document]