No Indication of Fraud Found to Warrant Pre-Base Date Rent Investigation

Tenant complained to the DHCR in 2020, claiming rent overcharge. The DRA ruled against tenant, who appealed and lost. The base rent date for the case was June 14, 2025, the earliest allowable base date under the 2019 HSTPA amendments to the rent stabilization law. The base date rent was $1,900 per month under tenant's base-date vacancy lease. All rent adjustments made after the base date were lawful. There was no overcharge. Tenant argued that the 2014 DHCR annual apartment registration included a $250 monthly rent increase based on bathroom and kitchen renovations but that no bathroom renovations were done. Tenant also claimed that landlord improperly charged her a broker's fee to rent the apartment and two extra months' security deposit. But, since there was no colorable claim of fraud, there was no basis to challenge any rent increases from before the base rent date. But landlord had refunded the broker's fee and excess security deposit to tenant before she filed her complaint. Nothing in the 2014 rent registration triggered an investigation into pre-base date events. And mere allegations of pre-base date illegal rent increases were insufficient to warrant pre-base date rental review.

Quets: DHCR Adm. Rev. Docket No. MV210014RT (4/22/25)[3-pg. document]