Tenant Can Collect Overcharge Amount from 7A Administrator

Facts: Landlord 7A administrator sued to evict tenant for nonpayment of rent. Tenant claimed a rent overcharge and breach of the warranty of habitability. He asked the court to dismiss the case. Tenant showed that the DHCR had ruled that there was a rent overcharge in 1999. The overcharge award included triple damages totaling $16,000. This gave tenant a rent credit through January 2003. Landlord claimed that a 7A administrator wasn't responsible for refund of a rent overcharge award. Court: Tenant wins. Tenant was entitled by law to deduct the overcharge award from his monthly rent as a credit until it was fully refunded. Tenant had been doing so for a year before the 7A administrator took over. For this purpose, the 7A administrator was an ''owner'' and responsible for continuing the rent credit.

Olton v. Hunter: NYLJ, 7/10/02, p. 28, col. 2 (Civ. Ct. NY; Schneider, J)