No Fraud by Landlord in Connection with Rent Overcharge Claim

Rent-stabilized tenant complained of rent overcharge. The DRA ruled against tenant, finding no overcharge. Tenant had paid a preferential rent since the base date. Tenant appealed and won in part. Tenant correctly pointed out that the DRA didn't examine pre-base date rent history in light of the fact that tenant paid a preferential rent. After reviewing a pre-base date lease, the DHCR found that tenant's preferential base date rent was the legal regulated rent. The total overcharge with interest was $4,969. Tenant also claimed that there was fraud by landlord, but the DHCR found no merit to this claim. Tenant didn't raise any issue of fraud before the DRA. And there was no proof of fraud. A pre-base date rent increase by itself is an insufficient indicator of fraud. In this case, there also was no J-51 tax abatement to consider, and there had never been any attempt to deregulate the apartment.  

Fitzsimons: DHCR Adm. Rev. Docket No. GV210005RP (1/11/19) [7-pg. doc.]