Landlord Reduced Rent to Comply with Prior DHCR Order

September 30, 1994

LVT Number: 9153

The DRA found that tenants had been overcharged. Landlord appealed, claiming that it had charged lower than the legal rent from Aug. 1, 1985, through April 30, 1988, to comply with a prior DRA order that had since been overturned. So, landlord argued that the subsequent rent increases should have been based on the higher amount landlord could have charged. The DHCR ruled for landlord. Usually, if a landlord charges a lower rent, even by mistake, it gives up the right to collect the higher legal amount. But, in this case, landlord had charged the lower rent to comply with a DRA ruling.

The DRA found that tenants had been overcharged. Landlord appealed, claiming that it had charged lower than the legal rent from Aug. 1, 1985, through April 30, 1988, to comply with a prior DRA order that had since been overturned. So, landlord argued that the subsequent rent increases should have been based on the higher amount landlord could have charged. The DHCR ruled for landlord. Usually, if a landlord charges a lower rent, even by mistake, it gives up the right to collect the higher legal amount. But, in this case, landlord had charged the lower rent to comply with a DRA ruling. So, landlord gets to collect the higher rent.

Time Equities Inc.: DHCR Adm. Rev. Dckt. No. CA 210231-RO (8/31/94) [6-page document]

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