When Is New Landlord Liable?

(Opinion letter submitted by Manhattan attorney Kenneth B. Hawco.) Landlord asked the DHCR if it applied Policy Statement 93-1 to rent overcharge cases. Under DHCR Policy Statement 93-1, a current landlord is jointly liable with prior landlord for excess rent collected by prior landlord, as determined in response to tenant's fair market rent appeal if the current landlord was a party to the fair market rent appeal. The DHCR will consider a current landlord to be a party to the fair market rent appeal if the DHCR serves current landlord with a copy of the complaint and gives current landlord an opportunity to file an answer. Alternatively, current landlord will be deemed a party if current landlord files an answer, whether or not the DHCR has served current landlord with the fair market rent appeal. The DHCR stated that it did, in effect, use the same criteria to determine whether a current landlord was a party to a rent overcharge proceeding.

DHCR Opin. Ltr. by Charles Goldstein (4/26/96)