Four-Year Lookback Didn't Bar Tenant's Reliance on 1986 Rent Reduction Order

Rent-stabilized tenant sued landlord for rent overcharge, based on a DHCR rent reduction order issued effective May 1, 1986. Landlord asked the court to dismiss the case. The court ruled for landlord and denied tenant's request to amend his complaint.

Tenant appealed, and the case was reopened. The appeals court granted tenant's request to amend his complaint. Tenant's claim, based on the outstanding rent reduction order, wasn't barred by the then-applicable four-year lookback period for rent overcharge claims. Since rent reduction orders impose a continuing obligation on landlords, tenants are entitled to recover for any overcharges that occur during the applicable limitations period by reference to rent reduction orders that remain in effect during that period. This rule applies even if the rent reduction order was initially issued outside the limitations period. 

Santana v. Fernandez: Index No. 2017-07703, 2020 NY Slip Op 03383 (App. Div. 2 Dept.; 6/17/20; Scheinkman, PJ, Rivera, Balkin, Iannacci, JJ)