Successor Tenant Entitled to Overcharges Only Since Date His Lease Commenced

Rent-stabilized tenant complained to the DHCR of rent overcharge in May 2018, and pointed out that the DHCR had issued a rent reduction order in 2008. That order reduced the apartment rent to $1 per month. Tenant had lived in the apartment with his girlfriend, the prior tenant, since 1997. She died in March 2017.  The DRA ruled for tenant and directed landlord to refund $78,896, including interest and triple damages, for periods dating back to the May 2014 base rent date.

Landlord appealed and won, in part. Tenant's lease commenced on May 10, 2017, after prior tenant died. So, even if he lived in the apartment before his lease started, he wasn't entitled to overcharges for any period before he became a tenant. Landlord argued that the rent reduction order should've been lifted when prior tenant moved back into the apartment after repairs were made following a fire. But no application to restore rent had yet been filed, so the collectible rent remained $1 per month. The total overcharge for the period between May 10, 2017, and May 31, 2018, when the complaining tenant passed away, was $22,761, including triple damages.

1035 Manhattan Avenue: DHCR Adm. Rev. Docket No. MO210010RO (7/8/24)[4-pg. document]