Overcharge Resulted from Increasing Preferential Rent in Excess of Guidelines

Rent-stabilized tenant complained to the DHCR of rent overcharge in October 2019. The DRA ruled for tenant and directed landlord to refund $8,000, including triple damages, after deducting $2,000 in rent arrears.

Landlord appealed and lost. The base rent date was June 14, 2015. When tenant moved into the unit in 2017, his lease listed a legal regulated rent and a preferential rent. In August 2019, landlord increased tenant's preferential rent upon lease renewal at an excessive rate. HSTPA had amended the rent stabilization law to limit preferential rent increases during a tenancy at rates equal to rent guideline renewal increases. The DRA had properly calculated the total overcharge after deducting any rent credits given and outstanding arrears.

Renaissance Equity Holdings: DHCR Adm. Rev. Docket No. MW210031RO (4/15/25)[3-pg. document]