Rent Overcharge of $150,000 Results from Outstanding Rent Reduction Order

Rent-stabilized tenant complained to the DHCR of rent overcharge in 2018. The DRA ruled for tenant and directed landlord to refund $150,249, including interest and triple damages. The overcharge finding was based on an outstanding prior DHCR rent reduction order.

Landlord appealed and lost. Landlord argued that the rent reduction order had been issued in 2006, 10 years after tenant moved into the apartment, that it was based solely on prior landlord's failure to answer the underlying service reduction complaint, and that tenant had acknowledged in her lease that all repairs had been made. 

But the DHCR pointed out that none of this mattered.  As held by New York's highest court in Cintron v. Calogero (2010), a rent reduction order imposed a continuing obligation on landlord to reduce the rent until services were restored. And under applicable provisions of the Rent Stabilization Law and Code, services are not restored, and the collectible rent remains frozen, until the DHCR issues a service restoration order, which requires a landlord to file an application for rent restoration. New landlord was responsible for having knowledge of the rent reduction order.

Avuben Realty LLC: DHCR Adm. Rev. Docket No. MS610024RO (12/17/24)[3-pg. document]