Case Type
Overcharge
Housing Type
Rent Stabilized
Court
Appellate Division, First Department
County
New York County (Manhattan)
L&T / Index / Case / Docket / Clerk's Number
151090/22
Slip Opinion Number
2025 NY Slip Op 02400
Petitioner
197 Madison Holdings LLC
Respondent
NYS Division of Housing and Community Renewal
Judge
Manzanet-Daniels, González, Shulman, O'Neill Levy, Michael
Decision/Order Date
2025-04-24
Posture
Other
Disposition
Judgment for Tenant
Winner
Tenant Substantially Won
Synopsis
The landlord challenged a DHCR ruling that found it liable for rent overcharges, asserting the agency acted arbitrarily in holding it responsible for rent increases by a prior owner. The rent had been frozen since 2000, yet the previous owner illegally raised it and later claimed deregulation. The tenant initiated a DHCR complaint, and the agency found overcharges based on the frozen rent order still in effect. The landlord failed to supply rent records, claiming ignorance of past rents due to a lack of documentation from the seller. The court held that carryover liability applies and the landlord was obligated to obtain and maintain rental history. The DHCR acted rationally in its factfinding and in assessing overcharges. Practice Note: Buyers of rent-stabilized buildings must perform due diligence and are responsible for ensuring compliance with rent regulations, including honoring preexisting rent freeze orders.
Recommended Citation
"Matter of 197 Madison Holdings LLC v NYS Div. of Hous. & Community Renewal" (2025). All Decisions. 1777.
https://ir.lawnet.fordham.edu/housing_court_all/1777
