Landlord Who Reduced Initial Rent Set by HPD Reduced Legal Regulated Rent

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. At some point, tenant claimed rent overcharge and argued that her monthly $1,500 rent was the legal rent, not a preferential rent. Tenant asked the court for permission to amend her answer to the nonpayment petition. The court ruled for tenant, finding there was no harm to landlord in permitting amendment to tenant's answer. And tenant showed a meritorious defense. Landlord argued that tenant's initial legal rent of $1,810 was set by HPD and HDC. It claimed that subsequent rent increases were properly based on the initial rent. The court found that, while HPD set the permissible legal rent at $1,819, landlord charged tenant $1,500. So tenant's initial rent was $1,500, and there was now an overcharge after lease renewal. The court also found the overcharge willful and assessed triple damages.

1405 Fifth Ave. Apts. v. Ali: Index No. 81934/17, NYLJ No. 1539594927 (Civ. Ct. NY; 9/24/18; Thermos, J)