Landlord Was Told that Apartment Was Rent Controlled

Tenant complained of a rent overcharge, claiming that she was rent stabilized. Landlord claimed that tenant was rent controlled. It bought the building from the City of New York in 1992, and the city gave landlord a written statement that tenant's apartment was rent controlled. Landlord initially registered the apartment as rent controlled and served MBR increase notices on tenant. Tenant didn't complain for seven years. The DRA ruled for tenant, and landlord appealed. The DHCR ruled for landlord in part. Since landlord relied on city documents to treat tenant as rent controlled, there was no willful overcharge up until 2000 when the DHCR issued a prior order correcting tenant's rent regulation status. Since landlord continued to treat tenant as rent controlled after that date and didn't register the apartment as rent stabilized, the rent was frozen for this period. Any overcharge after the 2000 order also was deemed willful.

LIC Assocs. LLC: DHCR Adm. Rev. Dckt. No. RE110010RP (9/3/03) [6-pg. doc.]