Total Rent Overcharge with Interest Is Over $475,000

Rent-stabilized tenant complained of rent overcharge. The DHCR ruled against tenant, finding no overcharge during the four years since the base rent date. Tenant filed an Article 78 court appeal of the DHCR's decision, claiming landlord fraud and seeking review of rent history predating the base rent date. The court ruled for tenant and sent the case back for further DHCR review. The DHCR then applied the default formula and found that there was a rent overcharge of $332,730, including interest. The DHCR found no willful overcharge given prior orders finding no rent overcharge and gave landlord renewal lease increases not usually granted when the default formula was applied. Landlord and tenant both filed Article 78 court appeals. The court ruled against both sides and they appealed. The appeals court found that the DHCR incorrectly gave landlord the renewal rent increases and sent the case back for recalculation. The DHCR then found that the total overcharge to date, with interest, was $476,789.

Pehrson and Downs: DHCR Adm. Rev. Docket No. FN410004RP (6/13/17) [7-pg. doc.]