Landlord Limited to Charging Registered Rent

Tenants complained of a rent overcharge. Tenants moved into the apartment on Aug. 1, 1984. Landlord charged tenants $2,410, although the RR-1 stated that the rent was $1,490. Tenants filed their overcharge complaint on Aug. 18, 1988. Landlord claimed that tenants were barred by the four-year rule from using the initial registered rent as the base rent. The DHCR ruled for tenants, and landlord appealed. The court and appeals court ruled against landlord. The DHCR reasonably found that landlord waived the right to the $2,410 paid by tenants by filing registration statements in 1985 and 1986 that falsely stated that the rent was $1,490. These registration statements also listed a lease using fictitious tenant names. In the circumstances, it was reasonable for the DHCR to use $1,490 as the legal base rent and to find an overcharge.

Lyndonville Properties Mgmt., Inc. v. DHCR: NYLJ, 2/25/02, p. 18, col. 5 (App. Div.1 Dept.; Williams, JP, Mazzarelli, Ellerin, Lerner, Rubin, JJ)