Landlord Collected Improvements Increase While Rent Cut Order Was in Effect

Tenant complained of a rent overcharge. The DHCR ruled for tenant, finding there was a willful overcharge and imposing triple damages. Landlord appealed and lost. Before tenant moved into the apartment, landlord had gotten a rent reduction order from the DHCR based on failure to maintain required services. Landlord made individual apartment improvements and charged tenant a vacancy increase and 1/40th increase. Landlord claimed that the rent reduction order barred collection of only rent guidelines increases. But the Rent Stabilization Code clearly bars collection of any further rent increases while a rent reduction order is in effect. A rent reduction order can be lifted only through the filing and approval of landlord's application to restore rent based on restoration of services.

Zumo Mgmt. v. DHCR: NYLJ, p. 32, col. 1 (11/17/99) (Sup. Ct. Queens; LaTorella, J)