1993 Rent Reduction Order Results in $92,000 Overcharge

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and froze tenant's monthly rent at $360, based on a 1993 rent reduction order for the apartment that was still in effect. This resulted in a rent overcharge of $92,000, including interest. Landlord appealed and lost. Landlord argued that there had been four vacancies in the apartment after the 1993 order was issued and that the DHCR should allow the vacancy increases that were effective before 2014 even if the rent was otherwise frozen. Landlord pointed out that, until 2014, vacancy increases were permitted even if a rent reduction order remained in effect. But the DHCR noted that the Rent Stabilization Code was amended in 2014 to disallow vacancy increases while a rent reduction order was in effect and that this amendment was properly applied to all the apartment vacancy increases. 

1466 GC Realty LLC: DHCR Adm. Rev. Docket No. EW610080RO (9/13/17) [4-pg. doc.]