DHCR Must Recalculate Overcharge Amount

Tenant complained of a rent overcharge. The DHCR ruled for tenant based on landlord's failure to provide a complete rent history for the apartment. The amount Of the overcharge was calculated under the DHCR's default method, which took into account the rents charged for the same size apartments in the building. Landlord appealed, claiming that the DHCR's decision was arbitrary and unreasonable. The court ruled against landlord, and landlord appealed. The appeals court ruled for landlord in part. The fact that there was a long delay before the DHCR notified landlord of tenant's complaint didn't matter because landlord admitted that it wouldn't have been able to produce the missing rent history records anyway. But the DHCR made an error as to the number of rooms in tenant's apartment So its calculation of rents for same size apartments was incorrect. The case was sent back to the DHCR for recalculation.

Mon-Rose Realty Corp. v. DHCR: NYLJ, p. 26, col. 1 (11/16/98) (App. Div. 1 Dept.; Milonas, JP, Williams, Andrias, Saxe, II)