Four-Year Rule Applies When Determining Applicable Vacancy Allowance

LVT Number: 13574

(Decision submitted by Patrick K. Munson of the Manhattan law firm of Kucker Kraus & Bruh, LLP, attorneys for the landlord.) Tenant complained of a rent overcharge. The DRA ruled for tenant, reduced his rent, and ordered landlord to refund $10,000, including triple damages. Landlord appealed, claiming that the DRA had looked at 1975 rent history records to determine whether landlord was entitled to collect a 15 percent vacancy allowance under Rent Guidelines Order No. 15 in 1984.

(Decision submitted by Patrick K. Munson of the Manhattan law firm of Kucker Kraus & Bruh, LLP, attorneys for the landlord.) Tenant complained of a rent overcharge. The DRA ruled for tenant, reduced his rent, and ordered landlord to refund $10,000, including triple damages. Landlord appealed, claiming that the DRA had looked at 1975 rent history records to determine whether landlord was entitled to collect a 15 percent vacancy allowance under Rent Guidelines Order No. 15 in 1984. This was improper, because under the Rent Regulation Reform Act of 1997, the DHCR couldn't look back more than four years before the date tenant filed his complaint. The DHCR ruled for landlord. The 15 percent vacancy increase must be accepted at face value and used to calculate the lawful rent. After recalculation, the total overcharge was only $600.

Zalman Mgmt. Corp.: DHCR Adm. Rev. Dckt. No. NF210024RP (7/27/99) [4-pg. doc.]

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