Landlord Can't Increase Rent Until There's a Restoration Order

April 30, 1993

LVT Number: 6957

Tenant sued landlord, claiming landlord collected a rent overcharge. Tenant pointed out that the prior tenant's rent was cut in 1987 because landlord didn't maintain required services. The DHCR's order stated that the rent couldn't be increased until landlord filed an application to restore the rent and until the DHCR granted that application. Landlord raised the rent when the prior tenant moved out and didn't apply to restore the rent. The trial court agreed with tenant that this was improper, and landlord appealed. The appeals court affirmed the lower court's decision.

Tenant sued landlord, claiming landlord collected a rent overcharge. Tenant pointed out that the prior tenant's rent was cut in 1987 because landlord didn't maintain required services. The DHCR's order stated that the rent couldn't be increased until landlord filed an application to restore the rent and until the DHCR granted that application. Landlord raised the rent when the prior tenant moved out and didn't apply to restore the rent. The trial court agreed with tenant that this was improper, and landlord appealed. The appeals court affirmed the lower court's decision. The Rent Stabilization Code doesn't limit the rent cut to the tenant who filed the service complaint---it applies to future tenants.

Carroll v. Parcel Three Inc.: NYLJ, p. 21, col. 3 (4/9/93) (App. T. 1 Dept.; Parness, JP, Miller, McCooe, JJ)

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