$762,000 Rent Cut Wasn't Excessive

April 1, 1993

LVT Number: 6882

The DHCR cut rents for tenants who complained of a reduction in building services for the period beginning February 1, 1984---the first rent payment date after landlord was informed of tenants' complaint---through September 1, 1989, the date services were restored. The DHCR also ordered that MCI increases be refunded to all tenants for the same period. The total rent reduction was over $762,000. Landlord appealed, claiming that the amount of the rent cut was excessive. The court denied landlord's appeal, and landlord appealed again. The appeals court again denied landlord's appeal.

The DHCR cut rents for tenants who complained of a reduction in building services for the period beginning February 1, 1984---the first rent payment date after landlord was informed of tenants' complaint---through September 1, 1989, the date services were restored. The DHCR also ordered that MCI increases be refunded to all tenants for the same period. The total rent reduction was over $762,000. Landlord appealed, claiming that the amount of the rent cut was excessive. The court denied landlord's appeal, and landlord appealed again. The appeals court again denied landlord's appeal. The amount of the rent reduction wasn't so excessive or disproportionate to the offense as to ``shock the conscience.'' Tenants shouldn't suffer because landlord didn't restore services until all appeals were completed.

Matter of Hyde Park Associates: NYLJ, p. 33, col. 5 (3/4/93) (App. Div. 2 Dept.; Rosenblatt, JP, Lawrence, O'Brien, Copertino, JJ)

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