No Overcharge Despite Incorrect Legal Regulated Rent

Rent-stabilized tenant complained of rent overcharge. Landlord charged tenant a preferential rent on the 2012 base date, and both the legal regulated rent and preferential rent were listed in tenant's base date lease. The DRA found that legal regulated rent amounts listed in 2014 and 2015 renewal leases after the base date were incorrect although there was no overcharge given the preferential rents collected.

Landlord and tenant both appealed. Landlord argued that tenant had agreed to the renewal lease amounts in a settlement agreement signed in court. But landlord didn't submit the settlement agreement to the DRA for consideration, the settlement agreement wasn't "so ordered" by the court, and the settlement agreement stated only that tenant would sign the 2014 and 2015 renewal leases, not that the rent amounts offered were correct. In tenant's PAR, he argued that the rent offered in his 2017 renewal lease was incorrect. But the DRA calculated rents only up to May 31, 2017. If landlord failed to adjust tenant's legal regulated rent to conform with the DRA's order, tenant could file a lease violation complaint if warranted.

Chavez/BRG Denman LLC: DHCR Adm. Rev. Docket Nos. GN110015RT, GN110029RO (12/11/18) [4-pg. doc.]