Court Looks at Rent Registration in Effect Four Years Before Tenant Complained

Facts: Landlord sued to evict tenant for nonpayment of rent. Tenant claimed a rent overcharge in his October 1995 answer to the nonpayment petition. Tenant had moved into the apartment in August 1991 at a monthly rent of $750. The DHCR registered rent for the apartment in April 1991 was $267. Landlord asked the court to bar tenant from raising the overcharge claim based on the four-year time limit for a rent overcharge. The court ruled against landlord and permitted tenant to raise the overcharge claim. The court later ruled for tenant on the overcharge issue, finding that the legal regulated rent when tenant moved into the apartment was $267. Landlord appealed. While the appeal was pending, the Rent Regulation Reform Act of 1997 was passed. Landlord then asked the court to re-examine the case in light of the new law. The court agreed to do so. Landlord again argued that tenant should be barred from raising the rent overcharge complaint based on the four-year time limit, which states that an overcharge complaint must be raised within four years of the first overcharge claimed, which in tenant's case was in August 1991, and that no award for overcharge can be based on an overcharge occurring more than four years before the claim is made, which in tenant's case would be October 1991. Court: Landlord loses. Even under the new law, a rent overcharge is a continuing violation of law that is repeated each month that landlord collects an illegal rent. The court can look at the rent history for the apartment back to October 1991, four years prior to the date tenant made his overcharge claim. In October 1991, the rent registration in effect stated that the legal regulated rent was $267. Tenant can raise the issue of rent overcharge based on this information.

78/79 York Assocs. v. Rand: NYLJ, p. 28, col. 5 (2/18/98) (Civ. Ct. NY; Elsner, J)