No Proof of Fraud to Warrant Rent History Review

Tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $15,259, including interest and triple damages. Tenant appealed and lost. Tenant argued that the DRA should have reviewed the rent history prior to the base date to determine whether there had been a fraudulent scheme to deregulate the apartment. The DHCR found that the DRA properly applied the Aug. 18, 2011, base date to the case. There was no proof of fraud that would warrant examination of the pre-base date rent history. A mere increase in rent alone didn't indicate fraud. The apartment's rent registration history was confusing. The mere failure to prove a higher legal regulated rent above a preferential rent also wasn't proof of fraud. The DRA properly reduced the base date rent in this case because there was no proof of a legal regulated rent that was higher than the preferential rent charged to prior tenant.

Teore: DHCR Adm. Rev. Docket No. GO210045RT (3/25/19) [5-pg. doc.]