DHCR Improperly Used Default Formula

October 31, 2010

LVT Number: #22962

Rent-stabilized tenant complained of a rent overcharge. Landlord admitted that there was an overcharge and claimed that it sent tenant a refund check. The DRA ruled for tenant and calculated the base rent using the DHCR's default formula. Landlord appealed and won. Landlord argued that the base date rent had been registered and wasn't challenged for four years. So the DHCR couldn't use the default formula to set the base rent. The court agreed with landlord and found the use of the default formula in this case irrational.

Rent-stabilized tenant complained of a rent overcharge. Landlord admitted that there was an overcharge and claimed that it sent tenant a refund check. The DRA ruled for tenant and calculated the base rent using the DHCR's default formula. Landlord appealed and won. Landlord argued that the base date rent had been registered and wasn't challenged for four years. So the DHCR couldn't use the default formula to set the base rent. The court agreed with landlord and found the use of the default formula in this case irrational. The case was sent back to the DHCR for recalculation of the rent overcharge.

Washington 921 Ltd Partnership v. DHCR: Index No. 10867/10, NYLJ 1202473124354 (Sup. Ct. Kings; Schmidt, J; 9/23/10)

Topics

More like this