Rent-Controlled Tenants Get Two Years to Claim Overcharge

Landlord asked the DHCR how much of a rent refund rent-controlled tenant could claim in a court action for a rent overcharge. Tenant had filed a rent overcharge complaint with the DHCR in 1988. In 1990 the DRA issued an order setting forth tenant's legal rent from 1970 through 1992. In 1996 tenant brought a court action seeking a refund of overcharges collected for the period between 1970 and 1992. In an opinion letter, the DHCR explained that, under rent control, the DHCR can only issue an order stating the legal rent and directing a refund of any excess rent paid. But any refund is limited to the period beginning no earlier than two years prior to the filing of tenant's complaint. If landlord doesn't refund the overcharge, tenant has one year from the date of the DHCR's final order to bring a court action to enforce the order. If the DHCR's order doesn't direct a refund, the rent control law gives tenant two years from the date of the occurrence of the overcharge to bring a court action.

DHCR Opin. Ltr. by Charles Goldstein (3/17/97)