DHCR Can't Decide Issue that May Not Arise

(Decision submitted by James R. Marino of the Manhattan law firm of Kucker Kraus & Bruh, LLP, attorneys for the landlord.) Tenant filed an overcharge complaint form, but stated that he wasn't complaining of an overcharge. Tenant instead stated he was questioning the amount listed as the legal regulated rent on the apartment registration form. The DHCR ruled that there was no overcharge, but stated in its order that the rent charged was the legal regulated rent and not a preferential rent. Landlord appealed, claiming that the DHCR was giving an advisory opinion on something that wasn't even an issue before the agency. The court ruled for landlord and revoked the DHCR's order. Although the DHCR claimed it had the discretion to determine the preferential rent issue, tenant had no overcharge claim and may never have a claim concerning the preferential rent. The DHCR shouldn't have issued an order on this issue when there was no actual controversy.

Synoptic Mgmt. Corp. v. DHCR: Index No. 120411/98 (2/2/99) (Sup. Ct. NY; McCooe, J) [3-pg. doc.]