Rent Overcharge Resulted from 20-Year-Old Rent Reduction Order

Rent-stabilized tenant complained of rent overcharge and lease violation. Tenant pointed out that there was a 2001 DHCR rent reduction order still in effect, which froze the apartment's legal rent. The DRA ruled for tenant and ordered landlord to refund $53,993. Since landlord already had refunded $65,674 to tenant, no triple damages were assessed. The apartment's monthly legal regulated rent as of Nov. 1, 2014 was $1,900. But the collectible rent was frozen at $832. The DRA also ordered landlord to offer tenant a renewal lease.

Landlord appealed and lost. Landlord argued that the tenant had been prior landlord's employee and therefore was responsible for DHCR filings. Landlord argued that tenant also had drafted and signed her own lease for the apartment. The DHCR found that it didn't matter that tenant was prior landlord's employee. The ultimate responsibility for complying with DHCR orders, and for filing an application to restore rent, belonged to landlord. And tenant had already been registered as the apartment's rent-stabilized tenant between 2015 and 2018. 

633 West 152 BCR LLC: DHCR Adm. Rev. Docket No. HS410010RO (2/3/20) [3-pg. doc.]