Building Tenants Were Rent Stabilized and Entitled to Rent Overcharge Findings
LVT Number: #32620
Tenants sued landlord seeking a declaratory judgment and rent overcharge refunds with triple damages dating back to 2015. Landlord claimed that the apartments in question had been luxury deregulated. Landlord relied on DHCR decisions concerning some apartments in the building. But, in this case, an appeals court had ruled in 2018 that the building was subject to rent stabilization in 2011. So, unless landlord showed a fact question regarding why the apartments in this case should not be subject to rent stabilization, tenants were entitled to summary judgment on their overcharge claims.
As to triple damages, the court found that prior to the 2018 appeals court decision, both the DHCR and HUD gave landlord opinion letters stating that HUD regulation of the building preempted local rent regulation, and there was a question of fact as to the willfulness of overcharges between 2015 and 2018. The court denied tenants' request seeking a rent freeze from the Feb. 28, 2015, base date. Tenants' rents hadn't been increased since 2017 or 2018. And a rent freeze is a punitive measure inapplicable where the landlord relied on the DHCR's endorsement of a misunderstanding of the law.
Based on submitted rent history information, the court found that 12 tenants were rent stabilized and the legal regulated rent was the base rent on Feb. 28, 2015, plus allowable renewal and vacancy increases to date. The claims of two tenants were dismissed, and one tenant's claim for summary judgment was denied given questions of fact. The claims of 13 tenants were granted as to liability, but summary judgment could not otherwise be granted on these claims given remaining questions of fact. The court ruled that a Judicial Hearing Officer or Special Referee would be appointed to determine the overcharge amounts in individual cases and whether triple damages should apply.
Indep. 435 CPW Tenants' Ass'n v. Park Front Apts., LLC: Index No. 152192/2019, 2023 NY Slip Op 31755(U)(Sup. Ct. NY; 5/23/23; Rosado, J)