Rent-Freeze Provisions Not Applied to Overcharge Claims

Nine current and former tenants of one building sued landlord for rent overcharge. Tenants requested an order granting declaratory relief, freezing each tenant's rent at the "last reliable rent" and preventing landlord from collecting more than that amount. Tenants claimed that while the building received J-51 tax benefits, landlord engaged in a fraudulent scheme to evade rent stabilization and improperly deregulate rent-stabilized units. The court ruled that improperly deregulated units were subject to rent stabilization. But the court denied tenants' request for an order determining and setting the lawful legal rent for each apartment, freezing each tenant's rent, and for injunctive relief and an award of damages for overcharges. New York's highest court had previously rejected applying rent-freezing provisions to Roberts' type cases, where the failure to file a proper rent registration resulted from a misunderstanding of the law and wasn't a fraudulent scheme to avoid rent stabilization.

Van Wijk v. 812 Realty LLC: Index No. 155800/2017, 2021 NY Slip Op 30271(U)(Sup. Ct. NY; 1/29/21; Goetz, J)