Rent Cut Applies to New Tenant

Tenant sued landlord for a rent overcharge. Prior tenant's rent had been cut by the DHCR based on reduced building services. Landlord increased the rent to the level chargeable under rent guidelines after prior tenant moved out. The trial court and appeals court ruled for tenant. Landlord had to file a rent restoration application certifying that services were restored before he could increase the rent again. Although the Rent Stabilization Code and DHCR order don't directly state what landlord should do if a new tenant moves in, the DHCR order states that the rent restoration application must be filed and approved before the rent can be increased.

Prost v. Parcel Three, Inc.: NYLJ, p. 21, col. 1 (1/3/94) (App. T. 1 Dept.; Parness, JP, Miller, McCooe, JJ)