Rent-Controlled Tenants Must Pay Back Rent Owed

Landlord sued rent-controlled tenants for back rent. Tenants refused to pay the full rent landlord demanded. The DHCR had reduced tenants' rents permanently in 1992. This was based on an authorized reduction of closet space in tenants' apartments to make way for a new plumbing system. Tenants claimed that landlord also then had to file a rent restoration application with the DHCR before it could collect any further rent increases after the rent reduction. The court ruled for landlord. Tenants appealed and lost. DHCR Policy Statement 90-1 permits collection of subsequent MCR increases if a rent reduction was based on a minor service reduction. Although the DHCR required landlord to file a rent restoration application for a rent-stabilized tenant in the same building for the same reason, the rules for rent-controlled tenants are different and weren't unreasonable.

301 Holdings LLC v. Matto: NYLJ, 9/26/01, p. 18, col. 1 (App. T.1 Dept.; McCooe, JP, Davis, Suarez, JJ)