New Landlord Claims It Wasn't Aware of Prior Rent Reduction Order

February 1, 2003

LVT Number: 16407

Tenant complained of a rent overcharge. The DRA ruled for tenant. The DRA found that as of Feb. 1, 1997, the monthly legal regulated rent was $815 but the collectible rent was frozen at $755 until April 2001 due to a service reduction order. New landlord appealed, claiming that it didn't know about the service reduction order and that there was no willful overcharge. The DHCR ruled against landlord. The service reduction order was issued before new landlord bought the building. It was landlord's responsibility to check the DHCR's records for any outstanding orders.

Tenant complained of a rent overcharge. The DRA ruled for tenant. The DRA found that as of Feb. 1, 1997, the monthly legal regulated rent was $815 but the collectible rent was frozen at $755 until April 2001 due to a service reduction order. New landlord appealed, claiming that it didn't know about the service reduction order and that there was no willful overcharge. The DHCR ruled against landlord. The service reduction order was issued before new landlord bought the building. It was landlord's responsibility to check the DHCR's records for any outstanding orders. Lack of knowledge of the service reduction order was no excuse for overcharging tenant.

Argus Realty 7920 LLC: DHCR Admin. Rev. Dckt. No. QB210039RO (8/15/02) [4-pg. doc.]

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