Rent Overcharge Must Be Calculated Using Default Method

LVT Number: #28670

Tenant sued landlord, claiming rent overcharge and fraud because his apartment was improperly deregulated while the building received J-51 tax benefits. The court ruled for tenant, finding that landlord engaged in a fraudulent scheme to remove the apartment from rent regulation, and directed a referee to calculate the legal regulated rent by using the default formula set forth under Rent Stabilization Code Section 2522.6. The court denied landlord's request to dismiss the case based on lack of subject matter jurisdiction.

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Kreisler v. B-U Realty Corp.: 2018 NY Slip Op 06054, 2018 WL 4353869 (App. Div. 1 Dept.; 9/13/18; Acosta, PJ, Manzanet-Daniels, Tom, Mazzarelli, Moulton, JJ)