Tenant's Eviction Delayed Pending Overcharge Decision

Facts: Tenant complained of a rent overcharge. The DRA ruled in tenant's favor, finding there was an overcharge of over $7,500. Tenant's monthly rent was reduced from $460 to $420. Landlord appealed. While landlord's PAR was pending, tenant stopped paying rent, and landlord sued to evict tenant for nonpayment. Tenant didn't appear in court, and the court ruled for landlord. Subsequently, tenant asked another court for an order delaying the eviction until the overcharge issue was decided by the DHCR. The amount of back rent due was approximately the same as the amount of the overcharge. Tenant also asked the court to either decide the overcharge issue or order the DHCR to do so immediately. Court: The DHCR must issue a decision on landlord's PAR within 60 days. In the meantime, the eviction is delayed. Under the rent stabilization code, by filing its PAR, landlord delayed any obligation to pay tenant the $7,500 ordered by the DRA. But while the PAR was pending, tenant could pay the reduced monthly rent. It was unclear in this case whether the DHCR would ultimately affirm the DRA's ruling. The DHCR might reduce the overcharge amount, since landlord didn't own the building when the overcharge began.

Gardner v. DHCR: NYLJ, p. 26, col. 4 (7/12/95) (Sup. Ct. Bronx; Friedman, J)