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Landlord & Tenant
Landlord Liable for Overcharge Collected By Tenant
Matter of 333 East 49th Partnership, L.P. v. New York State Division of Housing and Community Renewal (DHCR) NYLJ 8/10, 18, p. 22, col. 1 AppDiv, First Dept. (Opinion by Singh, J.)
In landlord's Article 78 proceeding challenging a rent overcharge determination, landlord appealed from Supreme Court's order denying the petition and dismissing the proceeding. The Appellate Division modified to reduce the amount of the overcharge, but held that landlord could be held liable for an overcharge even though landlord never collected any of the overcharge.
In 1995, landlord leased the subject rent-stabilized apartment to a partnership at a monthly rent of $1242.57. Landlord renewed the lease every two years through 2007. The 2003 lease, which was to run through 2005, set a stabilized rent of $1524.32. The tenant partners subsequently formed an LLC and, in 2003, leased the apartment, fully furnished, to subtenant Lombardo for $2800. In 2008, Lombardo received a form letter from DHCR, addressed to “Tenant”, informing him that the partnership was the tenant of record, and that the legal rent was $1741.10. DHCR advised that it was sending the letter because the partnership was listed as the tenant of record for many apartments in the building, and DHCR wanted to ascertain the actual tenants and rents.
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