Outstanding Rent Reduction Order Bars Landlord from Collecting Increase

Landlord sued to evict rent-controlled tenant for nonpayment of rent. Tenant claimed landlord demanded a rent increase it couldn't collect right now. The court ruled for tenant. The DHCR had reduced tenant's rent based on a reduction in required services. This order was still in effect when it was time to increase tenant's maximum collectible rent (MCR). Landlord claimed the MCR increase should be added on to tenant's base rent, and that the rent reduction from the DHCR order should be subtracted from the increased rent. But the DHCR's policy states that a rent reduction order for not maintaining services bars landlord from collecting any subsequent MCR increase until the DHCR restores the rent. The rent here wasn't yet restored. In fact, landlord's PAR and application to restore rent had been denied because the conditions still existed.

Kiss v. O'Grady: NYLJ, p. 22, col. 6 (10/20/93) (Civ. Ct. NY; Wendt, J)