Tenant Can Take Monthly Rent Credit

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Tenant claimed that he was withholding monthly rent payments to offset a rent overcharge award by the DHCR. Landlord argued that tenant couldn't take monthly rent credits, because tenant had filed a judgment based on the DHCR's order finding a rent overcharge with the New York County Clerk. The court ruled for tenant and dismissed the case. Landlord appealed and lost. Tenant filed the judgment shortly after he began crediting the overcharge award against his monthly rent. And the judgment remained unsatisfied. So the judgment was a nullity. Tenant was authorized to enter a DHCR overcharge order as a court judgment only where no rent credit had been taken. Tenant could continue to take rent credits.

775 Realty Co., LLC v. Devore: NYLJ, 11/28/08, p. 37, col. 3 (App. T. 1 Dept.; McKeon, PJ, Schoenfeld, Heitler, JJ)