Tenant Claims Overcharge Based on Large Rent Hike More Than Four Years Earlier

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Landlord and tenant signed a settlement agreement in court. Tenant, whose rent was subsidized by the Living in Communities (LINC) program, agreed she owed $227 per month for the months of November 2017 through March 2018. Landlord later asked the court for a judgment and eviction warrant because tenant didn't pay the agreed-upon arrears. Tenant, now represented by an attorney, asked the court to vacate the settlement agreement and permit filing of an amended answer. Tenant claimed rent overcharge and that landlord sought to deregulate the apartment by fraud. The court ruled for tenant and vacated the judgment. Under the law in effect before June 14, 2019, the court could look at rent history going back more than four years because landlord charged tenant a preferential rent and there were questions concerning fraud based on a substantial rent increase reflected in DHCR rent registrations for the apartment between 2014 and 2015. The Housing Stability and Tenant Protection Act of 2019, effective June 14, 2019, now required the court to "consider all available rent history which is reasonably necessary to make such determinations" concerning rent overcharge claims. The case was adjourned for trial.

SF 878 E. 176th LLC v. Grullon: Index No. L&T 15965/18, 2019 NY Slip Op 29201 (Civ. Ct. Bronx; 7/1/19; Garland, J)