DHCR Can't Order Refund to Rent-Controlled Tenant

(Decision submitted by James R. Marino of the Manhattan law firm of Kucker Kraus & Bruh, LLP, attorneys for the landlord.) Tenant complained to the DHCR of a rent overcharge in 1986. While that complaint was pending, tenant sued landlord in court, seeking a declaration that his apartment was rent-controlled. Tenant didn't seek an overcharge refund in his court action. The court ruled in 1990 that the apartment was rent-controlled and that the legal monthly rent was $125. That was tenant's original rent, although by 1988 he was being charged $900. In 1993 the DRA ruled that tenant's maximum collectible rent was $125 and stated that any overcharges collected from two years prior to the filing of tenant's complaint should be refunded to tenant. Landlord appealed the portion of the order directing a refund. The DHCR ruled for landlord. Since the court set the rent in 1990, the DHCR had no authority to rule on this issue. Tenant then appealed, claiming that the DHCR should have calculated the amount of the rent overcharge. The court ruled against tenant. Tenant didn't file a PAR to appeal the DRA's failure to calculate the rent overcharge. And the DHCR has no authority to calculate the amount of an overcharge to a rent-controlled tenant. By law, the agency can only set the lawful maximum rent and direct a refund. And since the legal rent in this case was already decided by a court, the DHCR had no authority to direct the refund.

Christy v. DHCR: Index No. 121880/96 (9/30/97) (Sup. Ct. NY; Cahn, J) [7-page document]