Lower Rent Charged Based on DHCR Order

Tenant complained of a rent overcharge. The DRA ruled for landlord, and tenant appealed. Tenant claimed the DRA shouldn't have allowed any guideline increases because operating and maintenance schedules weren't filed for 1988 and 1990. And since tenant's July 1, 1990, lease provided for lower rent, DHCR must base future rents on that reduced rent. The DHCR ruled against tenant. Although generally, landlord must base future rents on lower rent if landlord collects less than the maximum legal rent, this rule doesn't apply when landlord reduces the legal regulated rent in response to a DHCR order. Once landlord filed required operation and maintenance schedules with the Rent Guidelines Board, it was entitled to a higher base rent.

Pavlica: DHCR Adm. Rev. Dckt. No. LE910088RT (6/3/99) [4-pg. doc.]