Legal Rent Set by HPD in 2001 Took Precedence Over Prior Rent Frozen by DHCR

Tenants complained to the DHCR of rent overcharge in 2018. The DRA ruled against tenants. Although there were open rent reduction orders going back to 1999 that froze the apartment's rent, an HPD order dated April 1, 2001, set the rent at $679, an amount higher than the $302.50 that the rent otherwise would have been frozen at. The DRA found no overcharge and advised landlord that the collectible rent was frozen at $679 per month until rents were restored in response to all of the open service reduction orders.

Tenants appealed and lost. The DHCR noted that the case must be decided under the law in effect prior to enactment of the HSTPA since the complaint was filed in 2018. A prior, 2001 renewal lease order issued by the DRA couldn't be considered since this was issued more than four years before the current order was issued. And the HPD order setting the legal regulated rent at $679 took precedence over the DHCR's prior rent reduction orders. Since landlord collected no rent higher than $679, there was no overcharge.

Felix: DHCR Adm. Rev. Docket No. KR410021RT (8/25/22)[3-pg. document]