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Computing Rent Overcharges in Light of Roberts
In Roberts v. Tishman Speyer Props, L.P., 13 N.Y.3d 270, the Court of Appeals established that a landlord receiving J-51 benefits could not avail itself of the benefits of luxury deregulation. When a tenant brings an overcharge complaint based on improper luxury deregulation, how should the overcharge be computed? That issue has spawned conflicting decision in the First Department, and seems destined to reach the Court of Appeals.
Until Roberts was decided in 2009, both landlords and the Division of Housing and Community Renewal (DHCR) had assumed that the luxury deregulation statute was applicable to all rent-stabilized units, including those in buildings receiving J-51 benefits. Robert caught the industry by surprise and created a problem: how much rent should landlords be required to refund to tenants who had been paying market rents under the mistaken assumption that their apartments had been properly deregulated?
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