Rent-Controlled Tenant's Maximum Collectible Rent Remained Frozen

Rent-controlled tenant complained to the DHCR in 2023 of rent overcharge. He claimed that landlord charged illegal fees and failed to comply with a 1991 rent reduction order. Tenant claimed that he was currently paying $1,126 per month and that the apartment's Maximum Collectible Rent (MCR) was much lower because it was frozen for some time due to the outstanding rent reduction order.

The DRA ruled for tenant, finding that the MCR was $263.59 between May 1, 2000, and Jan. 1, 2021, when the DHCR issued a rent restoration order. The DRA directed landlord to refund any overcharges and that tenant may proceed in court to recover the overcharges.

Landlord appealed and lost. The 1991 rent reduction order found both essential and non-essential services were not being maintained and reduced the MCR by $100 per month. The order specifically stated that if none of the services were essential, landlord was entitled to MBR and fuel cost increases. But both the apartment's MCR and MBR were frozen while the rent reduction order was outstanding and the DRA restored the MBR to the full amount when all essential services were deemed restored effective May 1, 2000. The MCR also was restored by $90 as per the directive of the restoration order, and the MBR had increased over the years since the restoration order of 2000. The DRA fully complied with the 2010 decision of New York's highest court in Cintron v. Calogero as well as the directives of the 1991 rent reduction order and 2000 restoration order. 

JNPJ 93 St., LLC: DHCR Adm. Rev. Docket No. MR420022RO (10/10/24)[3-pg. document]