Rent Reduction Doesn't Apply to Vacancy Lease Tenant

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and reduced tenant's rent by removing a vacancy increase in connection with a DHCR rent reduction order that was issued prior to the effective date of the rent overcharge order. Landlord appealed and won. Landlord pointed out that a DHCR rent reduction order resulted in a reduction of the legal regulated rent to the level in effect prior to the most recent rent guidelines adjustment. The Rent Stabilization Code doesn't permit the removal of a prior vacancy increase in connection with a rent reduction order. It only bars an owner from collecting future guidelines and vacancy increases until the rent is restored. Since tenant was under a vacancy lease, there was no applicable rent guidelines adjustment and the rent reduction order in question didn't apply to reduce his rent. The total overcharge was $100. 

Wadsworth Realty: DHCR Adm. Rev. Docket No. CR410009RO (1/29/15) [6-pg. doc.]