Landlord Must Refund to Tenant Portion of Rent Overcharge Paid by SCRIE Program

Rent-stabilized tenant who received Senior Citizen Rent Increase Exemption (SCRIE) benefits complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $870 to tenant and $3,232 to the New York City SCRIE program. Tenant appealed and won, in part. The DRA correctly determined tenant's legal regulated rent and the amount of the overcharge. However, landlord should pay the entire refund to tenant. Rent Stabilization Law Section 26-509(3)(iii) states that when a rent reduction order is issued by the DHCR, the amount of the reduction will be subtracted from the rent payable by the tenant specified in a currently valid rent exemption order. Landlord can't collect from tenant "a sum of rent exceeding the adjusted amount while the rent order is in effect." Therefore, landlord should pay the entire refund amount of $4,102 to tenant rather than pay a portion to the SCRIE program.

Eskenazi: DHCR Adm. Rev. Docket No. EX410035RT (9/28/17) [3-pg. doc.]