Housing Court Decision Pre-empts DHCR from Deciding Rent Question

Rent-stabilized tenant complained that landlord offered her only a one-year lease renewal at a "preferential" rent even though tenant didn't have a preferential rent agreement. She said that landlord listed her legal rent as a preferential rent and was trying to improperly increase her rent upon renewal. Landlord claimed that tenant had had a preferential rent since 1993 and that landlord had registered the preferential rent each year since then. Landlord also argued that it was entitled to discontinue the preferential rent upon lease renewal. The DRA ruled against tenant, who appealed and lost. Tenant's earliest annual rent registration within four years before she complained listed both a preferential rent and a higher legal regulated rent. Tenant appealed, and the court sent the case back to the DHCR for reconsideration. But, in the meantime, landlord sued to evict tenant for nonpayment of rent. Neither side advised the housing court of the pending DHCR appeal, and the housing court ruled that tenant's rent was preferential, that landlord's failure to return to tenant a fully executed renewal lease was tenant's fault for refusing to execute the preferential rent rider, and that tenant owed landlord six months' rent. The DHCR, not knowing about the housing court decision, then ruled for tenant, finding that the rent listed in the renewal lease was the legal regulated rent. Landlord then appealed, pointing out that the housing court had already ruled on the issue. The court again sent the case back to the DHCR for reconsideration. The DHCR finally ruled that it could no longer rule on the issue because the housing court had already done so.

Diazarango: DHCR Adm. Rev. Docket No. YJ210011RP (1/29/13) [4-pg. doc.]