Landlord Waived Higher Rent Permitted by HPD

Tenant complained of rent overcharge. The DRA ruled against tenant, finding no overcharge because HPD had set tenant’s legal regulated rent at $615 per month effective May 1, 2011. Tenant appealed and won. Tenant pointed out that prior landlord charged tenant only $397 under tenant’s 2012 lease. Landlord also continued to collect that rent from tenant on a month-to-month basis after tenant’s lease expired. Because landlord charged less than the legal rent, it waived anything above the rent collected. It was unreasonable to permit new landlord to apply HPD’s order to set tenant’s rent at a higher rate after landlord and prior landlord waited four years to apply the maximum rent. Tenant’s next rent must be based on the rent charged--that is, $397.

Catala: DHCR Adm. Rev. Docket No. DU610013RT (12/8/15) [2-pg. doc.]