Overcharge Based on 28-Year-Old Rent Reduction Order

Rent-stabilized tenant complained of rent overcharge based on an outstanding rent reduction order that had been issued 28 years earlier. As a result, no increase should have been collected because the rent was frozen until and unless a rent restoration order was issued. The DRA ruled for tenant and ordered landlord to refund $16,000, including interest. Tenant appealed, claiming that the overcharge was willful and that triple damages should apply. The DHCR ruled against tenant. Current landlord bought the building in 2006. And a separate DHCR proceeding based on a reduction in services failed to reveal the existence of the prior rent reduction order. The DHCR also denied landlord’s appeal. Landlord had a continuing duty to restore services and obtain a rent restoration order from the DHCR. This duty wasn't changed by the four-year rent review rule, the passage of time, or the change in building ownership.

Soto/95th Street Corp.: Adm. Rev. Docket Nos. CX110009RT, CX110019RO (4/16/15) [3-pg. doc.]