Unique and Peculiar Circumstances Support Rent Charged to Tenant

Rent-controlled tenant complained of rent overcharge in 2015. She claimed that she moved into the apartment in 1956 and that landlord was currently collecting rent at $225 per month. Landlord responded that it bought the building at a public auction in 2014 and didn’t know tenant’s status. The DRA ruled against tenant, finding that the current rent paid was reasonable. Tenant appealed and lost. Tenant argued that, pursuant to DHCR rent control registration records, the maximum collectible rent for her apartment was $34.50 per month. The DHCR ruled against tenant. There were unique and peculiar circumstances supporting the $225 rent charged, under NYC Rent and Eviction Regulations Section 2202.7: The building contained a store and two apartments; tenant had lived in the apartment since 1956; tenant hadn’t complained about the rent charged for 60 years; landlord was the highest bidder at a public auction based upon a reasonable belief that the apartment’s rent was $225 per month; tenant complained of overcharge for the first time after landlord obtained the building; and prior landlord mismanaged the building by failing to seek MBR increases or fuel cost adjustments over the years.

Barresi: DHCR Adm. Rev. Docket No. DR220031RT (5/27/16) [3-pg. doc.]