DHCR Must Decide Rent Increase Challenge

(Decision submitted by Steven D. Sidrane of the Hewlett, New York, law firm of Sidrane & Schwartz-Sidrane, attorneys for the landlord.) Tenant sued landlord for rent overcharge in state Supreme Court. The overcharge claim was based on tenant's challenge to the claimed cost of landlord's individual apartment improvements, also known as 1/40th improvements. Landlord argued that tenant must bring this claim before the DHCR. Although the courts consider overcharge claims in defense to nonpayment cases, there was no such case here. And since determination of an overcharge based solely on 1/40th improvements must include consideration of all the equities involved, the DHCR was best able to rule on the case. Tenant argued that, by law, the court had the authority to hear her overcharge claim, that the DHCR was too slow, that she wouldn't have the right to question the landlord in a DHCR case, and that the DHCR tended to allow sharp practice by landlords with regard to 1/40th rent increase claims. The court ruled for landlord and dismissed the case. Tenant should file a complaint with the DHCR, since the DHCR is the agency responsible for determining overcharge disputes.

Lewis v. 305 Lexington Assocs. LLC and Torres: Index No. 109954/05 (Sup. Ct. NY 10/14/05; Soto, J) [2-pg. doc.]