Rent Increase Allowed for Deemed Renewal Lease

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant, finding that the total overcharge with interest and triple damages was $3,900. But, since tenant owed landlord back rent totaling $4,240, landlord was deemed to have refunded the overcharge. Tenant appealed and lost. Tenant claimed that the DRA incorrectly calculated the legal rent by including a deemed renewal lease increase for a term starting on Oct. 1, 2010. But, at the time the DRA issued its order, former Rent Stabilization Code (RSC) Section 2523.5(c) permitted the DHCR to deem a renewal lease where, as here, it was properly offered to tenant. And, even under revised RSC Section 2523.5(c)(2), effective January 2014, the deeming of the lease was proper because tenant remained in occupancy for the entire term of the deemed lease. [PDF]

Feldman: DHCR Adm. Rev. Docket No. ZH410013RT (3/18/14) [2-pg. doc.]