Tenants Can Reopen Overcharge Claim Based on HSTPA Choice of Forum Provision

Tenants sued landlord for rent overcharge. In September 2018, the court granted landlord's request to dismiss the complaint because the DHCR had concurrent jurisdiction and the court found that "the issues raised in this proceeding are particularly suited to resolution by DHCR, which has expertise in these matters." Tenants filed a notice of appeal but didn't file claims with the DHCR. Tenants later filed a motion to renew their claim that the court should examine their rent overcharge claims, based on Part F, Section 1 of the Housing Stability and Tenant Protection Act (HSTPA), which grants tenants the choice of forum for commencing a rent overcharge claim. Landlord argued in response that the court case was closed pending the outcome of tenants' appeal and that it was too late to file their motion to renew.

The court ruled for tenants. HSTPA not only overruled any case law finding that the DHCR had primary jurisdiction over rent overcharge claims, but also granted tenants their choice of forum. And, since tenants' claims remain unresolved until their appeal of the court's September 2018 order is decided, they are pending claims subject to a motion to renew.

560-568 Audubon Tenants Assn v. 560-568 Audubon Realty, LLC: 2019 NY Slip Op 29285 (Sup. Ct. NY; 9/12/19; Jaffe, J)