Tenant Can Deduct Overcharge Amount from Monthly Rent Bill

The DHCR issued an order finding a rent overcharge in December 2000. The building was then sold to current landlord in February 2001. Rent-stabilized tenant started deducting the overcharge from his monthly rent bill in July 2001. Landlord asked the DHCR if tenant could do this. In an opinion letter, the DHCR said yes. There is no time limit on enforcing an overcharge order. And current landlord is responsible for refunding the overcharge. Tenant can deduct up to 20 percent of the total overcharge award from his rent each month. The DHCR noted that rent-controlled tenants can't deduct overcharge awards but must get a judgment from the court to enforce overcharge awards.

DHCR Opin. Ltr. by Charles Goldstein (4/25/02) [2-pg. doc.]