HPD Order Prevents Application of Prior DHCR Rent Reduction Order

(Decision submitted by Karen Schwartz-Sidrane of the Rockville Centre law firm of Sidrane & Schwartz-Sidrane, LLP, attorneys for the landlord.)

Tenant complained of rent overcharge. The DRA ruled for tenant, finding that tenant's rent was frozen at $483 due to a 1994 DHCR rent reduction order. Overcharges collected both before and after a 2014 HPD order concerning rents at the building totalled $20,000 including interest. Landlord appealed and won in part. HPD issued an order in 2014, increasing tenant's rent-stabilized rent to $1,725 due to building rehabilitation. Based on Rent Stabilization Code Section 2522.4(f) and prior court decisions in unrelated cases, HPD's 2014 order set both the legal regulated rent and collectible rent at $1,725 and wasn't affected by the DHCR's prior rent reduction order. There was no rent overcharge after Dec. 1, 2014, when HPD's order was issued. The total rent overcharge with interest before that date was $14,000.

Shuhab HDFC: DHCR Adm. Rev. Docket No. FR410052RO (5/30/18) [3-pg. doc.]