No Refund Due Based on Overcharge in Light of Back Rent Owed

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant. No refund was required because tenant owed rent arrears, but landlord was directed to credit tenant's account by $3,878. This was the difference between the billed rent and the legal rent over a 40-month period. Landlord appealed and lost. Landlord argued that any claims concerning tenant's rent were settled by a 2014 court order in an eviction proceeding finding that tenant owed $21,264. Because another court had appointed an Article 81 guardian for tenant, that case was presently stayed and no eviction had occurred. But the housing court ruling concerned use and occupancy owed while the case was pending. This didn't conflict with the DHCR's ruling concerning the apartment's legal regulated rent. 

MHA Realty: DHCR Adm. Rev. Docket No. GN110004RO (6/3/19) [4-pg. doc.]