Prior Rent Reduction Order Reduces Base Rent

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $5,100, including triple damages and interest. Tenant appealed. The DRA had calculated the overcharge based on increases collected on top of the base date rent set four years before the date tenant filed her complaint. But tenant pointed out that there was a DHCR rent reduction order in effect since April 29, 1987. In the case of Cintron v. Calagero, New York's highest court had ruled that, while overcharges could be refunded only back to the four-year base date, a prior rent reduction order must be considered, and the legal rent frozen at that amount when calculating the actual overcharge. The DHCR sent the case back to the DRA for recalculation of the overcharge using the rent in effect under the 1987 rent reduction order as the base rent.

Shapiro: DHCR Adm. Rev. Docket No. YE310041RT (9/20/12) [2-pg. doc.]