Landlord Not Excused for 10-Year Delay in Filing

Tenant complained of a reduction in services. The DRA ruled for tenant and reduced his rent some time before landlord bought the building in 1997. Landlord applied for rent restoration in 2007. The DRA ruled for landlord after tenant acknowledged that no repairs were needed. The effective date of the rent restoration was June 1, 2007, the first rent payment date after landlord filed its application to restore the rent. Landlord appealed, arguing that the effective date of the rent restoration should be in 1997. Landlord claimed that it maintained the apartment at all times since it bought the building. Tenant participated in the New York City Lease Housing Section 8 Program, so the apartment was inspected by the city every year. Landlord claimed that it was never notified that there was an outstanding rent reduction. The DHCR ruled against landlord. Under DHCR Policy Statement 90-2, the retroactive date of a rent restoration order is the first date of the month following the date of delivery to tenant of landlord's application to restore rent. There was no legal justification for landlord's failure to file its rent restoration application earlier. Landlord could have asked the prior owner or requested DHCR records to learn if there were any outstanding rent reduction orders.

Group Kappa Corp.: DHCR Adm. Rev. Docket No. WA110056RO (4/18/08) [2-pg. doc.]