DHCR Can't Order Rent Refund

(Decision submitted by James R. Marino of the Manhattan law firm of Kucker Kraus & Bruh LLP, attorneys for the landlord.) Facts: Rent-controlled tenant moved into apartment in 1969 at a monthly rent of $125. In 1986, tenant filed a rent overcharge complaint with the DHCR. In 1988, tenant started a court proceeding to determine whether he was rent-controlled. The DRA ruled in 1990 that tenant's overcharge complaint proceeding would be terminated because the issue was to be decided by the court. The court ruled that tenant was rent-controlled, that the legal rent was $125 per month and that all prior leases charging more were revoked. Tenant then asked the DHCR to rule on his overcharge complaint. In 1993, the DRA ruled that tenant's legal rent was $125 at all times. The DRA ordered landlord to refund any overcharge collected from two years prior to the filing of tenant's complaint in 1986 up until the present. Landlord appealed, claiming DHCR wasn't authorized to order the refund. DHCR: Landlord wins. Under rent control regulations, DHCR has authority to order a rent refund only in cases where the lawful rent is ``in dispute.'' Courts have consistently interpreted the law to apply only to those case where the lawful rent was either unknown or had never been determined. Tenant should have sought a court order for a refund within two years of the court's decision in 1990.

Park & 76th Street Corp.: DHCR Adm. Rev. Dckt. No. HI410090RO (10/17/96) [4-page document]