New Landlord Not Liable

(Decision submitted by James R. Marino of the Manhattan law firm of Kucker Kraus & Bruh, LLP, attorneys for the landlord.) Tenant filed a fair market rent appeal, challenging the first stabilized rent charged for the apartment. The DRA ruled for tenant and reduced the rent. New landlord appealed, claiming that it wasn't responsible for refunding the excess rent collected by prior landlord. The DHCR ruled for landlord. Landlord bought the building after April 1, 1984. Under DHCR Policy Statement 93-1, where current landlord is party to a fair market rent appeal proceeding, it must refund the excess rent collected since April 1, 1984, or the start date of tenant's initial lease, whichever is later, even if all or a portion of the excess rent was collected by prior landlords. Since the excess rent in this case was for periods prior to April 1, 1984, when current landlord didn't own the building, current landlord wasn't responsible for refunding the excess rent collected.

Liuba Mgmt. Co.: DHCR Adm. Rev. Dckt. No. EB210028RO (9/11/97) [3-page document]