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Fraudulent Rent Registrations
Last month's issue analyzed the Court of Appeals' determination in Thornton v. Baron, invalidating the illusory tenancies. This month, we focus on the court's computation of rent due.
The rent stabilization law and codes have several provisions, some requiring work to reconcile, addressing limitations on overcharge claims and examination of a landlord's rent records. Rent Stabilization Law Sec. 26-516 says that the legal rent for purposes of determining an overcharge shall be the rent in the annual registration statement filed 4 years before the most recent registration statements. Presumably the most recent registration means the one filed right before an overcharge complaint. 26-516(g) says that an owner who has duly registered an apartment only has to keep records for 4 years before the most recent registration. 26-517(f) requires the annual registration to be provided for the tenant then in occupancy. Finally CPLR Sec. 213-a necessitates commencement of an overcharge action within 4 years of the first overcharge alleged and precludes rental examination history beyond 4 years before commencement.
More generally, the Rent Stabilization Code (RSC) has policy provisions that “it shall be construed so as to carry out the intent of the Rent Stabilization Law to ensure that such statute shall not be subverted or rendered ineffective, directly or indirectly … the policy herein expressed shall be implemented with due regard for the preservation of regulated rental housing.” RSC Sec. 2520.3. The Code also prohibits anyone from requiring a tenant to agree as a condition of getting an apartment that it will not be used as a primary residence. Illusory or collusive rental practices which deprive a tenant in possession rights are also barred. RSC Sec.2523.3(b) and (d).
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