Four-Year Rule Doesn't Apply to Longevity Increase

Facts: Tenant complained of a rent overcharge in 1999. Landlord claimed that it properly collected a longevity increase, in addition to the standard vacancy increase, because there had been no prior vacancy increase since 1978, more than 21 years earlier. Tenant submitted a DHCR rent registration record showing that there also was a vacancy in 1990. So landlord could collect a longevity increase for nine years, but not for 21 years. The DHCR ruled for tenant. Landlord appealed, and claimed that the DHCR had improperly ignored the four-year rule barring review of rent records beyond four years before tenant filed complaint. The court ruled for landlord, and the DHCR appealed. Court: The DHCR wins. The rent stabilization law bars the DHCR from considering its records beyond four years or requiring landlord to maintain records for longer than four years. But longevity rent increases apply when landlords have collected no prior vacancy increases for at least eight years. So if the DHCR followed the four-year rule in this instance, it would have to determine without any proof whether there was a proper longevity increase. This would be an irrational result and couldn't have been the intent of the Legislature. The DHCR properly ignored the four-year rule in this case.

Ador Realty, LLC v. DHCR: NYLJ, 10/12/05, p. 18, col. 1 (App. Div. 2 Dept.; Prudenti, PJ, Miller, Krausman, Spolzino, JJ)