Higher Base Rent Applies

Tenant complained of a rent overcharge. The DRA ruled for tenant, and landlord appealed, claiming that tenant and landlord had already agreed to a reduced rent during the course of the DHCR harassment proceeding. The DHCR ruled for landlord. While tenant's overcharge complaint was pending, landlord and tenant made an unsigned agreement that tenant would withdraw the overcharge complaint and landlord would issue a revised lease reducing the monthly rent from $585 to $423. The agreement wasn't made ''with prejudice.'' So the DRA correctly ruled on the overcharge complaint. But the DRA incorrectly used $423 as a base rent for determining the overcharge, since the lawful rent was actually $585 during that period. Landlord shouldn't be bound to its agreement to charge tenant $423 when tenant never went along with the agreement to withdraw the overcharge complaint.

O'Gara/274 7th Ave. Realty: DHCR Adm. Rev. Dckt. No. KB210111RT, KC210122RO (8/28/97) [3-page document]