Tenant Moved in While Rent Reduction Order Was in Effect

Landlord sued to evict unregulated tenant for nonpayment of rent in March 2016. Tenant claimed that he was rent stabilized and had been overcharged. The court denied tenant's request to dismiss the case. Tenant appealed and won. The DHCR had issued a building-wide rent-reduction order in 2012 based on landlord's failure to provide services to the apartment and other apartments in the building. The DHCR order reduced the apartment rent to $819 and barred any rent increase until the DHCR issued an order restoring rents. Prior tenant moved out in 2014. When tenant moved in, landlord gave him a vacancy-deregulated lease at a monthly rent of $3,400. The DHCR issued a rent restoration order effective June 1, 2016.  So, when tenant moved into the apartment, the rent was frozen at $819, and the apartment didn't become exempt from rent stabilization due to high-rent vacancy that occurred before tenant moved in. Tenant was overcharged and triple damages should be applied for willful rent overcharge. Tenant was also entitled to attorney's fees for the proceeding.

PWV Acquisition, LLC v. Paradise: 59 Misc.3d 130(A), 2018 NY Slip Op 50430(U) (App. T. 1 Dept.; 3/29/18; Ling-Cohan, JP, Gonzalez, J)