Outstanding Rent Reduction Orders Resulted in Rent Overcharge

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $16,000, including triple damages. Landlord appealed and lost. Because tenant filed his complaint on July 28, 2009, the four-year base date was July 29, 2005. But the DHCR relied on outstanding rent reduction orders issued in 1989 and 1990 to find that excess rent was collected since the base date. Landlord argued that the DHCR failed to follow the four-year rule. But, in 2010, New York's highest court had ruled, in Cintron v. Calogero, that the DHCR should honor rent reduction orders that were issued prior to the four-year limitations period but remained in effect during that period. And it didn't matter that current landlord claimed that it was unaware of the rent reduction orders, since it stepped into the shoes of prior landlord when it bought the building. 

Rozita Realty Corp.: DHCR Adm. Rev. Docket No. YH410011RO (10/12/12) [3-pg. doc.]