Old Rent Reduction Order Considered

Tenant complained of a rent overcharge. The DRA ruled for tenant. While landlord claimed tenant's base rent was $831, there was a rent reduction order in effect on the base date that legally froze tenant's rent at $635. The DRA ruled for tenant and found a willful overcharge. Landlord appealed, claiming that there was no willful overcharge. Landlord argued that it didn't own the building when the rent reduction order was issued, that the rent reduction order was issued more than four years before tenant's complaint was filed, and that landlord made repairs and got the rent restored at some point after it discovered the order. The DHCR ruled against landlord. The court of appeals has ruled that consideration of old rent reduction orders isn't barred by the four-year rule in overcharge cases. And rent history records showed that even after new landlord learned about the rent reduction order, it continued to overcharge tenant. So the DRA properly found that the overcharge was willful.

St. Alban's Realty LLC: DHCR Adm. Rev. Dckt. No. TL110017RO (2/9/06) [4-pg. doc.]