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Default Formula

NYC Rent Regulation: Rent Control/Rent Stabilized, DHCR Practice/Procedures

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Default Formula

Postby scottie2godie » Mon Jun 07, 2021 10:39 pm

In an overcharge case – if the amount a tenant has paid incorrect and supported by an inconsistent/fraudulent rent history – how is the “default formula” applied to determine what the legal rent should be set at? And are ICIs, MCIs, vacancy/annual increases and rent freezes then considered?

I understand this is probably not a black and white answer - just trying to wrap my mind around the process. For instance, if the court looks at other RS rents in the building – are they the same figures that were submitted by the landlord and determined to be fraudulent/inaccurate in the above scenario?
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Re: Default Formula

Postby TenantNet » Mon Jun 07, 2021 11:26 pm

Your question is a bit confusing, to say the least, and you don't tell us a lot. First, I assume you're aware that the lookback limit is 4 years except in cases where fraud can be shown. "Default formula" is one of those things that many of us find difficulty with it's application.

Can you give us some more detail on the matter? And if you haven't already, look at the Regina and Grimm cases.
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