DHCR Must Apportion Overcharge Between Current and Prior Landlords

December 1, 1994

LVT Number: 9274

(Decision submitted by Benjamin Binder of the Manhattan law firm of Shaw & Binder, attorneys for the landlord.) Tenant filed a fair market rent appeal, and, while the application was pending, current landlord bought the building at a foreclosure sale. The DHCR found that tenant had been overcharged by about $18,400, and ruled that current landlord was liable for the entire amount. Current landlord appealed, arguing that the DHCR had improperly found it responsible for the entire overcharge, when prior landlord had collected some of the excess rent.

(Decision submitted by Benjamin Binder of the Manhattan law firm of Shaw & Binder, attorneys for the landlord.) Tenant filed a fair market rent appeal, and, while the application was pending, current landlord bought the building at a foreclosure sale. The DHCR found that tenant had been overcharged by about $18,400, and ruled that current landlord was liable for the entire amount. Current landlord appealed, arguing that the DHCR had improperly found it responsible for the entire overcharge, when prior landlord had collected some of the excess rent. The court agreed, and sent the case back to the DHCR to apportion the overcharge amount between current and former landlords.

Robinson 1601 Realty Corp. v. NYS DHCR: Index No. 26212/93 (Sup. Ct. Kings; G. Aronin, J) (10/27/94) [8-page document]

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