Rent Reduction Orders Considered in Overcharge Claim

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Tenant claimed a rent overcharge. The court ruled for tenant. Landlord appealed and lost. Landlord claimed that the court improperly froze tenant's base date rent to the level set by a 1997 rent reduction order. Landlord argued that a rent reduction order occurring more than four years before tenant raised the overcharge claim couldn't be considered under the four-year rule. But New York's highest court has ruled that older rent reduction orders are properly considered in determining the existence and amount of rent overcharge, because these orders remain in effect throughout the four-year lookback period if the rent isn't otherwise restored.

656 Realty, LLC v. Araujo: 2010 NY Slip 52197(U), 2010 WL 5175012 (App. T. 1 Dept.; 12/22/10; McKeon, PJ, Shulman, Hunter, JJ)