Overcharge Resulted from Failure to Apply DHCR Rent Reduction Order

Landlord sued to evict rent-stabilized tenant for nonpayment of rent, claiming that tenant owed over $4,900. In response, tenant claimed that at least some rent had been paid, that there was a breach of the warranty of habitability, and that there was a rent overcharge in violation of a prior DHCR rent reduction order.

The court ruled for tenant and dismissed landlord's claim. Landlord didn't charge tenant more than the legal regulated rent of $1,996. This was the last reliable registered legal rent. But landlord disregarded a Rent Reduction Order that was effective May 1, 2018, and had overcharged tenant since that date since the collectible rent was $1,322. Since tenant's preferential rent was no more than that amount, there was only a small actual overcharge resulting in triple damages of $122. The case also was dismissed because landlord's rent demand was improper. 

Anderson A to Anderson G LLC v. Sanchez: Index No. L&T 10702/19, 2020 NY Slip Op 20097 (Civ. Ct. Bronx; 4/7/20; Tovar, J)