Burrows v. 75-25 153rd St., LLC, 2025 NY Slip Op 03861 (2025)

Citation: Burrows v. 75-25 153rd St., LLC, 2025 NY Slip Op 03861 (2025)
Parent Document: Burrows v. 75-25 153rd St., LLC, 2025 NY Slip Op 03861 (2025)
Jurisdiction: New York (state)
Effective Date: 2025-06-26
Original Source: https://www.courtlistener.com/opinion/10624627/burrows-v-75-25-153rd-st-llc/ ↗

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The court correctly rejected defendant's assertion that review of the rent history beyond the four-year lookback period was precluded. Even before the enactment of the HSTPA (L 2019, ch 36), Rent Stabilization Code (9 NYCRR) § 2521.2(c) provided that, where preferential rents are employed, the rent history preceding the preferential rent may be examined in order to ensure that the legal regulated rent was properly calculated. Here, the complaint adequately alleged that, as reflected by the DHCR rent roll for the building, defendant registered the initial legal regulated rent for the apartments in the building in amounts far higher than those actually charged and paid, in violation of 9 NYCRR 2521.1(g), and registered the actual rent charged and paid as a "preferential rent." While defendant argues that no tenant has ever been charged more than the preferential rents registered with DHCR, and that the increases resulting from the higher registered rent did not result in an overcharge, defendants do not deny that the legal regulated rents for plaintiffs' apartments within the lookback period bear no relationship to the rents charged and paid. Further, plaintiffs demonstrated that certain increases in the preferential rent may have exceeded the permitted Rent Guidelines Board increases. Thus, the court properly permitted the overcharge claims to proceed to discovery.

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