Court Refers Tenant's Overcharge Claim to DHCR

Tenant sued landlord, claiming that her apartment was rent stabilized, that it had been improperly deregulated, and that she had been overcharged. Landlord asked the court to dismiss the case, and tenant asked the court to decide the case without trial based on available documentation. The court ruled against both sides. Landlord claimed that the building had been substantially rehabilitated after Jan. 1, 1974, but presented no proof. The court also found that the DHCR should decide tenant's rent overcharge claim since that agency was better equipped to interpret the rules, review apartment registration and payment histories, determine the validity of landlord's claims to rent increases and calculate damages due to rent overcharges. Tenant's request for a determination without trial was denied without prejudice to her right to refile her claims in a complaint to the DHCR. The court acknowledged that the Housing Stability and Tenant Protection Act of 2019 (HSTPA) added provisions that a complaining tenant had the right to choose the preferred forum for an overcharge claim but noted that the court had often acknowledged that the DHCR was in the best position to decide such claims.

Streb v. Whistlepig Assoc., Inc.: Index No. 160707/2017, 2020 NY Slip Op 30197(U) (Sup. Ct. NY; 1/23/20; Perry, J)