Building in Foreclosure

(Decision submitted by James R. Marino of the Manhattan law firm of Kucker Kraus & Bruh, LLP, attorneys for the landlord.) Tenant complained of a rent overcharge. The DRA ruled for tenant, froze tenant's rent based on landlord's failure to register, and ordered landlord to refund $11,000. Landlord appealed, claiming that it bought the building following a receivership under a foreclosure action. The DHCR ruled for landlord and recalculated tenant's rent under a default procedure used in cases involving foreclosures. The DHCR averaged the lowest stabilized rent in an apartment in the building with the same number of rooms with prior tenant's last rent (if known) and with complaining tenant's first rent, minus guideline and vacancy allowances. When an allowable apartment improvement increase was added to this amount in this case, there was no overcharge.

1296 Pacific St. Mgmt. Assocs.: DHCR Adm. Rev. Dckt. No. KF210044RO (12/30/99) [2-pg. doc.]