1990 Rent Reduction Order Still in Effect

Rent-controlled tenant complained of a rent overcharge. The DRA issued an order stating that tenant's maximum collectible rent was $945 as of Aug. 1, 2005. Tenant appealed, pointing out that the DRA issued a rent reduction order in 1990. This froze tenant's rent at $401. Tenant also said that landlord's 2006 application to restore rent had been denied.
The DHCR ruled against tenant. Although there was an outstanding rent reduction order still in effect freezing the rent for tenant's apartment since 1990, there were many orders issued since then that raised the MCR of the apartment without a challenge by tenant. Tenant also never filed any noncompliance proceedings based on the 1990 rent reduction order and still enjoyed a 7.5 percent rent reduction based on the 1990 order. Tenant then filed a court appeal, claiming that the DHCR's decision was arbitrary and unreasonable. The court ruled for tenant, finding that tenant's rent remained frozen by the 1990 order. The court sent the case back to the DHCR for further processing. The DHCR adjusted the MCR to the level in effect in 1990 at the time of the rent reduction order. That order specifically stated that until an order was issued by the DHCR restoring the rent, landlord couldn't demand or collect any rent increase above the level set in the 1990 order.

Katz: DHCR Adm. Rev. Docket No. WG220002RP (9/25/08) [4-pg. doc.]