Highest Court Greatly Restricts Tenants’ Claims for Rent Overcharge

Michael Littman, Partner

In a sweeping decision deciding four rent overcharge cases, Regina Metropolitan Co., LLC v. DHCR; Raden v. W7879, LLC; Taylor v. 72A Realty Associates, L.P., and Reich v. Belnord Partners, LLC the Court of Appeals, the highest Court in the State of New York, determined that the newly enacted Housing Stability and Tenant Protection Act (“HSTPA”) does not apply to overcharges that occurred prior to the passage of the law.

As you are probably aware, the legislature passed the HSTPA on June 13, 2019. This “new law” fundamentally changed many aspects of the Rent Stabilization Law, but was particularly damaging to owners as it greatly expanded the rights of tenants to claim rent overcharge.

Until April 2, 2020, the HSTPA had been applied by the Courts and DHCR to rent overcharge cases that were still active thus radically changing the calculations for rent overcharge.

However, the Court of Appeals decision changes all of this. The Court determined “that the overcharge calculations amendments cannot be applied retroactively to overcharges that occurred prior to their enactment.” This decision will have an effect on all your pending rent overcharge claims.

We are here to answer any questions you may have regarding this change in the law, or any other matter you may have. Please contact us at .

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