Four-Year Rule Applies Despite DHCR Delay

Tenant filed a fair market rent appeal. The DRA ruled for tenant and ordered landlord to refund $47,000 to tenant. Landlord appealed. The DHCR ruled against landlord in 1998. Landlord started a court case to overturn the DHCR's ruling. Landlord claimed that the four-year time limit on rent overcharges that went into effect in June 1997 while the case was pending barred the DHCR from considering tenant's fair market rent appeal. The court refused to apply the new law containing the four-year rule, finding that the DHCR's own delay had caused the case to still be pending when the law changed. Landlord appealed again and won. Under the amended law, if the amount of rent set forth in an annual rent registration statement filed four years before the most recent registration statement isn't challenged within four years of its filing, neither such rent, nor service of any registration, is subject to challenge at any time afterwards. The amended law applied to any case pending before the DHCR on June 7, 1997, unless it could be shown that the DHCR's delay in processing a case was willful or negligent. Tenant didn't show any proof of willfulness or negligence.

In re Goldman v. DHCR: NYLJ, 3/30/00, p. 26, col. 4 (App. Div.1 Dept.; Nardelli, JP, Williams, Mazzarelli, Wallach, Lerner, JJ)