Four-Year Time Limit Doesn't Apply to Rent Freeze

Facts: Rent-stabilized tenant complained of a rent overcharge. The DHCR ruled for tenant in part. On Dec. 11, 1999, the base rent date, a prior rent reduction order was in effect. This froze the rent charged to tenant on the base date until Feb. 1, 2004, when the rent was restored based on the restoration of required services. Tenant appealed, claiming that the DHCR's decision was arbitrary and unreasonable. Tenant argued that the base date rent itself was an overcharge due to the prior rent reduction order that landlord violated by continuing to collect rent increases. Tenant claimed that the four-year rule shouldn't apply. The court and appeals court ruled against tenant. They found that, although the rent reduction order was issued more than four years before tenant filed his overcharge complaint, the DHCR properly froze the rent at the amount collected on the base date until such time as services were restored. Tenant then appealed to New York's highest court.

Court: Tenant wins. The DHCR must apply rent reduction orders that were issued prior to the four-year limitations period when calculating overcharges during the four-year limitations period. The case was sent back to the DHCR for calculation.

Cintron v. Calogero: NYLJ, 10/20/10, p. 26, col. 1 (Ct. App.; Ciparick, J, Lippman, CJ, Graffeo, Read, Pigott, Jones, JJ; Smith, J [dissenting])