Landlord Didn't Pay Rent Registration Fee

Facts: Landlord sued to evict tenant for nonpayment of rent. Tenant claimed a rent overcharge because landlord hadn't paid a $10 annual rent registration fee in 1990. So, tenant claimed, any rent increase since then was illegal. Court: Tenant wins. Rent Stabilization Law section 26-517.1(a) requires landlord to pay an annual administrative fee of $10 for registration of each apartment. If this fee isn't paid, landlord is barred ''from applying for or collecting any further rent increases'' and ''late payment of such fee shall result in the prospective elimination only'' of such sanctions. The NYC Department of Finance certified that the 1990 administrative fee was unpaid. Landlord claimed this was incorrect but offered no proof. Landlord also argued that under DHCR Policy Statement 92-1, sanctions for nonpayment of the fee are delayed until 60 days after the DHCR sends landlord a nonpayment notice and a copy of the bill. But landlord submitted no proof that it received the notice from the DHCR. More importantly, the court found that DHCR Policy Statement 92-1 wasn't a binding rule or regulation; it was only a statement of DHCR ''policy.'' The law was clear that since the administrative fee wasn't paid, landlord couldn't collect any rent increase until it was. The DHCR's policy statement didn't protect landlord from tenant's claim that the rent demand was unlawful.

Lombardo v. Santevecchi: NYLJ, p. 33, col. 4 (11/20/96) (Civ. Ct. Kings; Lau, J)