Landlord Relied on Illusory Tenancy to Set Rent

January 1, 2009

LVT Number: #20918

Tenant complained of a rent overcharge. The DHCR ruled for tenant and used its default formula to set the base rent. Landlord appealed. Both the mid-level appeals court and New York's highest court ruled against landlord. The Rent Regulation Reform Act of 1997 applied to any proceeding, including tenant's case, that was pending before the DHCR at the time the law was enacted. Landlord claimed that the base rent in effect four years before tenant filed his complaint should be higher than the amount set by the DHCR. But landlord relied on an illusory tenancy for that figure.

Tenant complained of a rent overcharge. The DHCR ruled for tenant and used its default formula to set the base rent. Landlord appealed. Both the mid-level appeals court and New York's highest court ruled against landlord. The Rent Regulation Reform Act of 1997 applied to any proceeding, including tenant's case, that was pending before the DHCR at the time the law was enacted. Landlord claimed that the base rent in effect four years before tenant filed his complaint should be higher than the amount set by the DHCR. But landlord relied on an illusory tenancy for that figure. So there were no reliable rent records available, and it therefore was proper for the DHCR to apply its default formula to set the base rent in this case.

Partnership 92 LP v. DHCR: NYLJ, 12/3/08, p. 28, col. 5 (Ct. App.; Kaye, C.J, Ciparick, Graffeo, Read, Smith, Pigott, Jones, JJ)

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