Pre-Base Date Rent Reduction Order Bars Landlord From Collecting Vacancy Increase

Tenant complained of rent overcharge. The DRA ruled for tenant based on a pre-base date rent reduction order, which imposed a continuing obligation on landlord not to increase the apartment’s rent until landlord filed for and received a DHCR rent restoration order. The DRA ordered landlord to refund $19,759. Landlord appealed and lost. Landlord argued that when the rent reduction order was issued in 1996, the Rent Stabilization Law and Code allowed landlord to take a vacancy increase despite the existence of the rent freeze order. But the DHCR found that in January 2014, RSC Section 2523.4(a)(1) was amended to state the a rent reduction order barred landlord from applying for or collecting any further increase in rent, including statutory vacancy increases, until such services are restored or no longer required pursuant to a DHCR order. And for all vacancy leases commencing before the Rent Act of 1997, such as tenant’s lease, there were no statutory vacancy increases, and the vacancy allowance set by the NYC Rent Guidelines Board was a guideline adjustment that must be removed upon a rent reduction based upon a service decrease.

Fairview Associates: DHCR Adm. Rev. Docket No. EO410027RO (10/12/16) [3-pg. doc.]