Tenant Can Withdraw Overcharge Complaint to Pursue Matter in Court

Tenant complained to the DHCR of rent overcharge before landlord sued to evict her in 2011. In 2015, the DRA ruled that, in light of the improper deregulation of the apartment and questions concerning the validity of the $2,700 base date rent, the rent must be set under the formula set forth in the 2012 case of 72A Realty v. Lucas.  The DHCR denied landlord's appeal of that decision, and landlord then filed in Article 78 court appeal of the DHCR's ruling. The case was sent back to the DHCR, which again ruled against landlord in 2017. Landlord filed another Article 78 court appeal, and the matter was again sent back to the DHCR. While pending before the DHCR, the April 2020 court decision in Regina Metro. v. DHCR clearly held that the rent in effect on the four-year base date was the legal base date rent. In August 2020, tenant withdrew her complaint with prejudice so that she could pursue the matter in court. So the DHCR terminated the landlord's long-standing PAR and revoked its prior rent overcharge finding. The DHCR noted that the choice of forum provisions found in HSTPA gave tenant the right to pursue her overcharge claim in court. The court rejected landlord's argument that, since the DHCR already had issued a determination that landlord had been appealing, tenant was improperly trying to forum-shop too late. 

Four Thirty Realty LLC: DHCR Adm. Rev. Docket No. HM410013RP (8/24/21)[4-pg. document]