Rent Overcharge Resulted from Prior Rent Reduction Order

Landlord sued to evict tenant for nonpayment of rent. Landlord and tenant signed a settlement agreement in court. Tenant agreed to pay rent arrears totalling $5,760 in installment payments and landlord could execute an eviction warrant upon tenant’s default. A month later, the parties signed a second agreement extending the payment schedule. Another month later, tenant asked the court to vacate the judgment and warrant, and to allow her to assert a defense of rent overcharge. The court ruled for tenant. Landlord appealed and lost. A DHCR rent reduction order in effect since before tenant moved into the apartment barred any vacancy rent increase. Although landlord claimed that repairs had been made, the DHCR hadn’t issued a rent restoration order. Therefore, the rent remained frozen and tenant had been overcharged. 

130 East 18th LLC v. Mitchel: 50 Misc.3d 55, 2015 NY Slip Op 25407 (App. T. 2 Dept.; 12/8/15; Elliot, JP, Pesce, Solomon, JJ)