HPD Restructured Rents

(Decision submitted by Peter A. Schwartz of the Manhattan law firm of Fromme Fromme & Schwartz, attorneys for the landlord.) Rent-stabilized tenant complained to the DHCR about a rent overcharge. Landlord claimed he was entitled to a rent increase because the building rents had been restructured after a complete building rehabilitation. The DRA found that landlord had overcharged tenant, and awarded tenant a refund of back rent and triple damages. Landlord appealed and won. The rent increase was justified because the building qualified for rent restructuring under HUD's Section 8 Rehabilitation Program. The DHCR found that HPD had properly restructured the rent for tenant's apartment. And, since tenant's income exceeded the maximum allowed for income assistance, the rent claimed by landlord was accurate. Tenant could pay off the back rent over a two-year period.

Reifer: DHCR Adm. Rev. Dckt. No. HF 210199-RO (4/15/94) [2-page document]