Prior Rent Reduction Order in Effect

Facts: Landlord sued to evict tenant for nonpayment of rent. Tenant didn't know the legal effect of a DHCR rent reduction order that was in effect at the time and signed a settlement agreement to pay back rent claimed by landlord. Tenant later defaulted on the payment schedule, and landlord got a judgment, even though by then, tenant understood the DHCR order and told the court about it. Tenant then asked the court to reconsider the judgment. Landlord claimed that the DHCR order was more than four years old and so couldn't be considered in setting the legal rent. The court ruled for tenant and vacated the settlement agreement and judgment. Landlord appealed. Courts: The DHCR order reducing the rent based upon landlord's failure to provide services remains in effect as a continuing order. So this order was still in effect when landlord, who didn't comply with it, registered and collected rent in excess of that permitted under the order for more than four years after it was issued.

Thelma Realty Co. v. Harvey: NYLJ, 12/14/01, p. 23, col. 5 (App. T.2 Dept.; Scholnick, PJ, Patterson, Golia, JJ)