What If Your Building Changes Ownership?
When title to a rent stabilized building changes hands, a tenant can collect the full overcharge from the new owner. 99 NYCRR § 2526.1(f)(2) (NYC RSC); Franklin Assoc. v. Klusman, NYLJ 1/7/92. 21:4 (First Dept.); Turner v. Spear, 134 Misc.2d 733, 512 N.Y.S.2d 335 (Civ. Ct. N.Y. County 1987); see also Coulston v. Singer, 86 Misc.2d 1001, 384 N.Y.S.2d 74 (N.Y. County 1976). This is true for overcharges found as a result of Fair Market Rent Appeals. DHCR’s former policy of apportioning overcharge liability between prior and subsequent owners was found to be "inconsistent and without rational basis." Polanco v. Higgins, 175 A.D.2d 729, 572 N.Y.S.2d 916 (First Dept. 1991); see also DHCR Policy Statement 93-1.
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