Court Strikes Down Grace Period for Landlord to Pay Registration Fees

Facts: Tenants sued the DHCR, claiming that DHCR Policy Statement 92-1 was unconstitutional and at odds with the rent stabilization law. Under the policy statement, the City Department of Finance notifies DHCR if landlord doesn't pay the rent registration fees when due. The DHCR then mails landlord a notice. Landlord must pay the fee plus additional charges or interest within 60 days. If not, then and only then will landlord be barred from application or collection of rent increases. The DHCR defended the policy and argued that tenants weren't harmed by it. Court: Tenants win. The rent stabilization law states that if landlords don't pay annual registration fees for stabilized apartments, the rent is immediately frozen. Landlords can lift the rent freeze when they pay the fees plus penalties. DHCR Policy Statement 92-1 is void; it is inconsistent with the law because it delays the immediate penalty of a rent freeze. The policy statement penalizes tenants by requiring them to pay rent increases when landlords haven't paid the annual fees on time.

Moreira v. Halperin: NYLJ, p. 22, col. 5 (8/16/95) (Sup. Ct. NY; Ramos, J)