DHCR Properly Computed Interest on Rent Overcharge

May 22, 2017

LVT Number: #27663

Rent-stabilized tenant complained of rent overcharge. The DHCR ruled for tenant and denied landlord’s PAR. Landlord filed an Article 78 appeal and lost. The court and appeals court found that the DHCR properly declined to accept evidence submitted by landlord for the first time with its PAR. The DHCR’s assessment of interest on the overcharge, including for periods in which tenant paid the excessive rent into escrow, rather than to landlord, was consistent with the statutory purpose of discouraging overcharges and encouraging prompt repayment of overcharge amounts.

Rent-stabilized tenant complained of rent overcharge. The DHCR ruled for tenant and denied landlord’s PAR. Landlord filed an Article 78 appeal and lost. The court and appeals court found that the DHCR properly declined to accept evidence submitted by landlord for the first time with its PAR. The DHCR’s assessment of interest on the overcharge, including for periods in which tenant paid the excessive rent into escrow, rather than to landlord, was consistent with the statutory purpose of discouraging overcharges and encouraging prompt repayment of overcharge amounts. The DHCR also properly relied on the date of the earliest registered rent for the prior tenant in determining the date of the last vacancy for purposes of computing the applicable longevity increase added to tenant’s vacancy rent.

 

 

 

London Terrace Gardens LP v. DHCR: 2017 N.Y. Slip Op. 02907, 2017 WL 1348235 (App. Div. 1 Dept.; 4/13/17; Renwick, JP, Manzanet-Daniels, Kapnick, Webber, JJ)

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