Landlord Waived Lawful Rent Increases

Rent-stabilized tenant in Yonkers complained to the DHCR of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $576, including triple damages. Landlord appealed and lost. Landlord had waived the possibility of a higher legal regulated rent (LRR) when it charged tenant $1,700 per month in his rent-stabilized vacancy lease, which was less than the LRR applicable under that lease. This ruling followed long-standing DHCR policy. It didn't matter that landlord may have been entitled to a statutory vacancy increase and additional increase for individual apartment improvements (IAIs) in 2017 when tenant moved in. Once waived in tenant's vacancy lease, landlord improperly collected rent increases in tenant's subsequent renewal lease. 

18 Coyle Place LLC: DHCR Adm. Rev. Docket No. LM910024RO (6/16/23)[2-pg. document]