Collecting Rent Increase from Rent-Stabilized Tenant Without Renewing Lease Resulted in Overcharge

Rent-stabilized tenant complained to the DHCR of rent overcharge in 2018. The DRA ruled for tenant in part, setting the lawful monthly rent at $1,632 and finding a total overcharge $1,344, but directed no rent overcharge refund because tenant's rent arrears totalled $35,673. Landlord and tenant both appealed and lost. Landlord argued that tenant's rent was lawfully increased to an amount higher than $1,632 after a prior renewal lease ended. But tenant's lease wasn't thereafter renewed although she improperly paid a higher rent for seven months while she remained a month-to-month tenant. Collection of that rent increase without an actual renewal lease was improper and resulted in rent overcharge. Tenant's PAR claimed that there had been a rent freeze in effect since 1992. There was a rent reduction order issued that year concerning a different apartment only. So there was no rent freeze affecting tenant.

1546 Holdings LLC/Sullivan: DHCR Adm. Rev. Docket Nos. LN610019RO, LN610029RT (6/6/23)[4-pg. document]