Settlement Agreement Vacated When Tenant Points Out Viable Rent Overcharge Claim

September 23, 2016

LVT Number: #27199

Landlord sued to evict tenant for nonpayment of rent. Landlord and tenant signed a settlement agreement. Landlord got a judgment and eviction warrant, which was stayed to give tenant a chance to pay the $3,000 back rent owed. Tenant later asked the court to vacate the settlement agreement. Tenant claimed that there was a rent overcharge because landlord improperly set the rent under the 421-a tax benefit program. Landlord had set the rent at a higher rent by using Section 8 payment standards to determine tenant’s legal rent.

Landlord sued to evict tenant for nonpayment of rent. Landlord and tenant signed a settlement agreement. Landlord got a judgment and eviction warrant, which was stayed to give tenant a chance to pay the $3,000 back rent owed. Tenant later asked the court to vacate the settlement agreement. Tenant claimed that there was a rent overcharge because landlord improperly set the rent under the 421-a tax benefit program. Landlord had set the rent at a higher rent by using Section 8 payment standards to determine tenant’s legal rent. The court ruled for tenant, who had raised a viable rent overcharge claim not addressed in the settlement agreement. The case was sent back to the court for re-settlement or trial.

 

 

 
Ogden Avenue, LP v. Rivera: Index No. 49141/15, NYLJ No. 1202766275874 (Civ. Ct. Bronx; 8/15/16; Lutwak, J)

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