Lower Rent Paid as On-Time Rent Concession Payment Became Legal Regulated Rent

Rent-stabilized tenant complained to the DHCR in 2015 of rent overcharge. The DRA ruled for tenant and directed landlord to refund $37,183, including triple damages. Landlord appealed and lost. Landlord claimed that the apartment had become vacancy deregulated in July 2018 after the complaining tenant moved out. But this was irrelevant to tenant's overcharge claim. The DRA also correctly determined that a temporary conditional rent concession clause in tenant's lease, which conditioned a discounted rent on timely payment, was not permissible. So the discounted monthly rent was in fact the legal rent. Any subsequent rent increases were based on the discounted rent amount. Courts have upheld rulings that on-time discount clauses are invalid and that such rents do not constitute preferential rents. 

79-81 Clifton Place Owner LLC: DHCR Adm. Rev. Docket No. LN210007RO (4/19/23)[8-pg. document]