Landlord Must Refund Overcharge Collected by Prior Landlords

March 1, 2000

LVT Number: 13900

Tenant filed a fair market rent appeal. The DHCR ruled for tenant, and landlord appealed. Landlord had bought the building in 1991, just two months before the DRA ruled on tenant's fair market rent appeal. Landlord claimed that it shouldn't have to refund money collected by two prior landlords. The court and appeals court ruled against landlord. Landlord's PAR was decided in 1998. Since 1993, it has been the DHCR's policy that current landlords must refund overcharges collected from tenants by prior landlords. So the DHCR's decision was reasonable.

Tenant filed a fair market rent appeal. The DHCR ruled for tenant, and landlord appealed. Landlord had bought the building in 1991, just two months before the DRA ruled on tenant's fair market rent appeal. Landlord claimed that it shouldn't have to refund money collected by two prior landlords. The court and appeals court ruled against landlord. Landlord's PAR was decided in 1998. Since 1993, it has been the DHCR's policy that current landlords must refund overcharges collected from tenants by prior landlords. So the DHCR's decision was reasonable.

One Three Eight Seven Assocs. v. DHCR: NYLJ, 2/28/00, p. 26, col. 2 (App. Div.1 Dept.; Sullivan, PJ, Nardelli, Wallach, Lerner, Buckley, JJ)

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