No Fraud Found in Connection with Rent Overcharge

LVT Number: #31282

Tenant complained of rent overcharge and improper deregulation of her apartment. The DHCR ruled for tenant in 2017 because the apartment had been vacancy-deregulated incorrectly while the building received J-51 tax benefits, and set forth a calculation method for rent overcharges. Tenant then filed an Article 78 court appeal, claiming that there was a fraudulent scheme to deregulate the apartment that required further rent history review. The court found no fraud but granted the DHCR's request to send the case back for recalculation of rent overcharges.

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