DHCR Can't Order Tenant to Pay Back Rent Owed After Dismissing Overcharge Claim

Rent-stabilized tenant complained to the DHCR of rent overcharge in 2024. The DRA ruled for tenant in part, finding that the base date legal regulated rent (LRR) was $1,473 per month, that as of May 1, 2022, the LRR was $1,579, and that the collectible rent on that date was $1,577 per month based on a $1.29 rent decrease directed under a prior DHCR order concerning a J-51 tax abatement. The total rent overcharge was $3,304, including triple damages. But, since tenant owed over $14,000 in rent arears, no refund was required by the DRA.

Landlord appealed and won, in part. Landlord's rent ledger showed that it had fully credited $1.29 each month to tenant based on the J-51 tax abatement, and that landlord quickly credited tenant for any other overpayments as they arose. Landlord argued that the DHCR should dismiss the overcharge complaint and direct tenant to pay what was now over $17,000 in back rent owed. The DHCR found there was no overcharge since any rent credits due to tenant were given quickly. But the DHCR couldn't rule on any back rent owed by tenant. Landlord would have to go to court to pursue collection. 

Bennett Apartments, LLC: DHCR Adm. Rev. Docket No. MU410012RO (2/25/25)[2-pg. document]