New Landlord Liable

Facts: Landlord bought a six-apartment building in 1986 and didn't register it with the DHCR. In 1988 the DHCR sent landlord a tenant's rent overcharge complaint, which had been filed in 1985. Landlord didn't provide a rent history despite a number of requests and notices. The DRA ruled for tenant in 1990, finding a willful rent overcharge and ordering a refund of $22,000. Landlord appealed, claiming he now had information from prior landlord that the apartment was vacant between 1980 and the date when tenant moved in. So there were no leases. The DHCR ruled against landlord, and landlord appealed. Court: Landlord loses. Landlord gave no valid reason for not responding to tenant's complaint while it was pending before the DRA. The DHCR's rejection of landlord's new arguments on appeal was reasonable. Landlord was responsible under the Rent Stabilization Code for the full amount of the overcharge, even if some portion was collected by prior landlord. And DHCR's delay in notifying landlord of tenant's complaint didn't bar processing. Landlord was given several chances to answer over a period of several years.

DiMaggio v. DHCR: NYLJ, p. 31, col. 4 (3/20/98) (App. Div. 2 Dept.; Santucci, JP, Joy, Friedmann, McGinity, JJ)