Landlord Properly Collected Renewal Lease Increases

Tenants complained to the DHCR of rent overcharge in 2012 and claimed that landlord failed to properly register the apartment. They claimed they moved into the apartment in 1992 under a fraudulent lease. They also claimed that landlord failed to properly file an amended initial registration form although directed to do so in a 1996 DHCR decision. Landlord pointed out that, in a 2013 nonpayment proceeding against tenants, the housing court had ruled that even if landlord hadn’t served or filed the amended RR-1, this didn’t bar landlord from collecting the lawful rent upon lease renewal.

The DRA ruled that the housing court had already resolved the overcharge claim but ordered landlord to amend a renewal lease that commenced on Dec. 1, 2012, but had been offered late on Nov. 15, 2013. The DRA said that the renewal lease should reflect a commencement date of March 1, 2014, and that any rent increase collected before that date should be refunded. Landlord and tenants both appealed.

The DHCR found that the DRA had correctly ordered amendment of the renewal lease. And the housing court had resolved the overcharge claim and its decision was affirmed on appeal. 

Ordway Holdings, LLC/Pugmire: DHCR Adm. Rev. Docket Nos. EO410042RO, EO410059RT (1/26/17) [10-pg. doc.]