Landlord Can Collect Rent Increases Retroactively

Rent-stabilized tenant complained of rent overcharge because, starting in May 2014, landlord retroactively sought to collect minimum dollar rent increases and not the guideline percentage increases under a lease that commenced on Dec. 1, 2008. Landlord claimed that it was applying the final 2011 appeals court decision in Casado v. Markus, which allowed this alternative under Rent Guidelines Board Orders 40 and 41. The DRO ruled for tenant and found that, while no overcharge was collected, landlord had waited an unreasonable amount of time to seek the minimum dollar alternative permitted by the Casado court. Landlord appealed, and the DHCR ruled against landlord. Landlord then filed an Article 78 court appeal. The court found no proof that landlord voluntarily or intentionally waived its right to collect the Casado rent increases. The case was sent back to the DHCR, which then ruled for landlord. The Casado court imposed no deadline for retroactive rent increases under RGB Orders 40 and 41.

Parsons Manor LLC: DHCR Adm. Rev. Docket No. DX110006RP (2/10/16) [6-pg. doc.]