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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

Matter of Regina Metro. Co., LLC v. New York State Div. of Hous. & Community Renewal, 2018 NY Slip Op 5797 (2018)

Citation
Matter of Regina Metro. Co., LLC v. New York State Div. of Hous. & Community Renewal, 2018 NY Slip Op 5797 (2018)
Parent Document
Matter of Regina Metro. Co., LLC v. New York State Div. of Hous. & Community Renewal, 2018 NY Slip Op 5797 (2018)
Jurisdiction
New York (state)
Effective Date
2018-08-16

Other Sections in This Document (82)

Full Text

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The Rent Administrator (RA) did not fully agree with either landlord's or tenants' analysis. In an order dated February 26, 2014, the RA found that the landlord did not engage in a [*3]fraudulent scheme to avoid rent stabilization. He found that there had been a rent overcharge, but he did not calculate the base date rent according to either of the opposing methods urged by landlord and tenants. Instead, the RA looked back beyond the four-year limitations period to find the last legal regulated rent, which was the $2,096.47 rent charged in 2003. To that amount the RA added all subsequent rent increases allowed under rent stabilization, and found the base date rent was $3,325.24. From this amount he calculated a rent overcharge of $207,192.59, plus interest, which came to $283,192.59 [FN2]. The RA offered to hear evidence from the landlord concerning individual apartment improvements (IAIs) to the unit that could potentially increase the regulated rent. However, the landlord never offered such evidence to the RA. The RA further found that landlord had demonstrated that the overcharge was not willful and that treble damages were therefore not warranted. In so finding, the RA cited the general confusion about the impact of the J-51 program on rent stabilization before Roberts and Gersten. Finally, the RA found that tenants were not entitled to attorneys' fees.