Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Computing Rent Overcharges in Light of Roberts

By Stewart E. Sterk
November 01, 2018

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?

The problem required DHCR and the courts to harmonize Roberts with the Rent Stabilization Law's four-year lookback period. Section 26-516(a)(2) provides that:

"no determination of an overcharge and no award or calculation of an award of the amount of an overcharge may be based upon an overcharge having occurred more than four years before the complaint is filed…. This paragraph shall preclude examination of the rental history of the housing accommodation prior to the four-year period preceding the filing of a complaint pursuant to this subdivision."

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Legal Possession: What Does It Mean? Image

Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.

The Anti-Assignment Override Provisions Image

UCC Sections 9406(d) and 9408(a) are one of the most powerful, yet least understood, sections of the Uniform Commercial Code. On their face, they appear to override anti-assignment provisions in agreements that would limit the grant of a security interest. But do these sections really work?