Rent Overcharge Calculation Method Modified for Tenant

Landlord sued to evict tenant in 2017. Tenant claimed rent overcharge and improper deregulation. In 2018, the court ruled for tenant, noting landlord's fraudulent scheme to deregulate tenant's apartment. At that time, the court directed the parties to settle an order for calculation of rent overcharges. The court denied landlord's request to renew or reargue the decision. After New York's highest court ruled on certain rent overcharge provisions of the Rent Stabilization Law in Regina Metro. v. DHCR, tenant asked to renew the court's later order that calculated a legal rent for the apartment using a method other than the default formula. Tenant pointed out that records showed no annual registrations were filed from 2011 to 2015 despite the building receiving J-51 tax benefits since 2010, and despite the rent-stabilized status, didn't designate tenants as rent stabilized in registrations or offer rent-stabilized leases to tenant. The court ruled for tenant and struck the portion of the order calculating the legal regulated rent and period for calculating damages, to reflect the default formula.

Upper Broadway J LLC v. Iverson: Index No. 80175/17, NYLJ No. 1607445576 (Civ. Ct. NY; 10/14/20; Elsner, J)