Managing Agent Responsible for Refund

Tenant filed a fair market rent appeal. The DRA ruled for tenant, reducing the first stabilized rent for the apartment and directing landlord to refund tenant over $14,000. Landlord appealed, claiming that it became the net lessee of the building in 1984 and that prior owner of the building remained responsible for any excess rent collected before that date. The DHCR found that in this case there was no actual change of ownership in 1984. Under the net lease, landlord acted as managing agent for the prior owner. So, as managing agent, landlord was responsible for overcharges collected during this period.

Time Equities: DHCR Adm. Rev. Dckt. No. ARL 08393-L (2/19/93) [7-page document]