New Landlord Not Liable

(Decision submitted by James R. Marino of the Manhattan law firm of Kucker Kraus & Bruh, LLP, attorneys for lhe landlord.) Tenant filed a fair market rent appeal challenging the amount of the first rent-stabilized rent. The DRA ruled for tenant and ordered landlord to refund $7,000 in overcharges. Landlord appealed, claiming that it bought the building after complaining tenant moved out and that it never collected any rent from tenant. Landlord argued that it shouldn't be responsible for any refund. The DHCR ruled for landlord. Landlord shouldn't be responsible for excess rent paid since it never collected any of it. DHCR Policy Statement 93-1 makes current landlord responsible for overcharges paid by tenant from April 1, 1984, or the commencement date of tenant's initial lease, whichever is later. But the DHCR ruled that Policy Statement 93-1 wouldn't be applied retroactively in this case because it would result in an undue hardship to landlord.

479 12th St. Assocs.: DHCR Adm. Rev. Dckt. No. DL210267RO (3/26/97) [2-page document]