TenantNet Forum

Where tenants can seek help and help others



Can there be an overcharge if preferential rent decreases?

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

Moderator: TenantNet

Can there be an overcharge if preferential rent decreases?

Postby plantlamp » Fri Apr 01, 2022 4:57 pm

Hi,

Thanks for this site - it is such a wealth of information. I just wish I had found it earlier!

I (and another previous T in the building) have had many issues with my LL who owns MANY RS buildings in Brooklyn -- bedbug infestations, vermin, continued misrepresentations about conditions/repairs/etc, illegally withholding security deposits, lying on the bedbug disclosure forms that there has been no issues, the list goes on. A google search of the management company/LL reveals that this behavior is rampant in their buildings.

I received my DHCR rent history which shows a number of periods with perhaps illegal rent increases, it is my understanding that I can't do anything about those which are older than 4 years, is that correct?

The most recent suspicious rent increase was of the legal regulated rent from 2018-A to 2019 where the legal rent was raised ~34% and it is listed as VAC/LEAS MCI and no T is listed for 2019 where the apartment status is RS-V (vacant). I have no idea if the MCI increases were legitimate or not. A new tenant moved in in 2020 and the legal rent was raised 5%, I moved in 2021 and it was raised 1.5%. However, since 2010 there has been a preferential rent that is much lower than the legal rent. I know that this is standard in RS buildings but I am wondering how you allege an overcharge, is it based on an unlawful increase in the preferential rent or the legal regulated rent or the actual rent charged (if that happens to differ from the preferential rent listed)? The preferential rent has actually decreased since it peaked in 2018 (this is likely due to the pandemic market).

Let me know if you have any thoughts on whether or not I have an overcharge action or if there are other steps I should take. I was going to FOIL the full history and other info for my unit from DHCR. Happy to PM the full history (I have it in a spreadsheet where I've calculated the percent increases year over year). Thanks in advance!
plantlamp
 
Posts: 1
Joined: Fri Apr 01, 2022 4:28 pm

Re: Can there be an overcharge if preferential rent decrease

Postby TenantNet » Sun Apr 17, 2022 2:06 pm

Sorry for the delay in responding - we're backed-up.

For overcharges, yes, the look-back period is still 4 years. It was lengthened to 6 years in 2019, but the Regina decision set it back.

But the 4 years is only on issues of overcharge, not RS status. And we're not sure if that also applies to the setting of the legal rent (while an overcharge would be a LL obligation to refund, you can have a reduction of the legal rent without the landlord being saddled with an overcharge.)

You don't say when you moved in - or other details - so we can't answer about the 2018-2019 increase. But it does sound very sketchy.

For MCIs, the LL must serve you with a notice (when you move in) that a MCI is pending with details. But if already decided, then you'll have to find the MCI orders. You can ask other tenants or FOIL DHCR for any and all MCI orders (and PAR appeals).

You say since 2010 there has been a preferential rent, but...

1. Preferential rents do not continue from one tenant to an other, so whatever existed in 2010 applies ONLY to the tenant who had occupancy at that time.

2. Preferential rents must be memorialized in a rider attached to your initial lease. LLs cannot start preferential rents later.

3. In 2019 the laws on Pref. rents changed. Now, any PR must be kept until the tenant vacates. The LL may not increase or abandon a PR after a tenant moves in. Increase are applied to the preferential rents, not the so-called "legal rents." However the LL can return the rent to the legal rent once a tenant vacates.

If you file an overcharge complaint it would be the rent you actually pay over what is legally collectible. So if the "legal rent" is $5,000 and you pay only $3,100 and the preferential rent is $2,900, then there would be an overcharge of $200 per month.
The Tenant Network(tm) for Residential Tenants
Information from TenantNet is from experienced non-attorney tenant
activists and is not considered legal advice.

Subscribe to our Twitter Feed @TenantNet
TenantNet
 
Posts: 10306
Joined: Mon Jan 21, 2002 2:01 am
Location: New York City


Return to NYC Rent Regulated Apartments

Who is online

Users browsing this forum: No registered users and 43 guests