Suit Filed Vs. DHCR Code Changes
by Dave Powell

On April 19, tenants and their allies filed suit in Brooklyn Supreme Court to challenge recent changes to the Rent Stabilization Code, imposed by the state Division of Housing and Community Renewal last Dec. 20. The new changes give landlords everything from new loopholes for opting out of rent stabilization and collecting extra rent increases, to new ways of evicting tenants. Judith Goldiner, an attorney from the Legal Aid Society who is counsel to the tenant groups in the suit, calls them a “landlord wish list.”

Plaintiffs in the suit include Met Council, NY State Tenants and Neighbors Coalition, Brooklyn Housing and Family Services (formerly Brooklyn Tenants Council), Riverside Tenants’ Association, Assemblymembers Clarence Norman and Brian McLaughlin, State Senator Martin Connor and several individual tenants. They are all Brooklyn tenants, membership-based groups with tenants in Brooklyn, or elected officials representing Brooklyn tenants. If they succeed in getting the DHCR code changes thrown out, the decision will be binding on stabilized tenants across the city.

The basis for the legal challenge is twofold. First of all, attorneys for the tenants are arguing that DHCR violated the State Agency Procedures Act, which outlines how changes to state regulations are carried out. Among other things, the lawsuit claims that DHCR failed to consider the economic impact of these drastic changes on tenants. Secondly, it claims that DHCR exceeded its authority by making changes to laws passed by the state legislature.

DHCR has claimed that the recent changes simply brought the Rent Stabilization Code in line with the changes to the rent laws passed in 1997. However certain aspects of the new code are not in the vaguest way related to the 1997 changes, such as a provision limiting what a prime tenant can charge their roommate, and new grounds for landlords to evict tenants, including “tenant harassment of landlords.”

Prior to the suit being filed in Brooklyn, tenant attorneys have been challenging individual aspects of the new code changes as they come up in court. An example of this is an overcharge case pending in the Appellate Term. The case was initiated before the changes were passed last December. But on appeal, the landlord attempted to apply the rules of the new code. Attorneys representing the tenant are hoping to win the appeal and set a precedent that would knock out that aspect of the new code.

Tenant attorneys expect to bring more of these suits as tenants start getting hauled into court on new code issues. Rent-stabilized tenants should be on the alert for landlords trying to take advantage of the changes. If you’re asked to pay any unusual rent increases or get taken to court for any of the reasons stated below, contact Met Council! We are trying to monitor how the courts and DHCR are interpreting the code, and to keep track of tenants for possible lawsuits.

“So in the meantime,” you might ask, “what do I do if my landlord acts on the new code?” Because the new code is so broad, there is no one answer to this question. It is further complicated by the fact that although DHCR passed these changes last December, it has still not issued operational bulletins or fact sheets on them. To some degree, tenant advocates have been left to guess on the details of how they will be implemented. If you have a question as to what to do when faced with an issue relating to the new code changes, call Met Council. Remember that as of now, these code changes are law, and violating them can put your housing in jeopardy. As of press time, the DHCR has still not responded to the suit. We estimate that the case will probably go before a judge in the fall. When that time comes, grass-roots activism in support of this legal effort will be crucial.

Also to be considered is the 2002 gubernatorial race. Candidates looking for any votes from the over 2 million stabilized tenants in New York must pledge a complete trashing of these horrible anti-tenant code changes.

Contact Met Council, if ...

Overcharges/4-Year Rule

• If the rent charged four years before you filed an overcharge complaint was higher than the rent on the registration statement on file at that time.
• If your apartment was vacant 4 years before filing of an overcharge.
• If your apartment was “temporarily exempt” (because of occupancy by member of landlord’s family or super) 4 years before the filing of an overcharge complaint.
• If you filed a rent overcharge within 90 days of being served a RR-1 form, but are being barred from proceeding because it is more than 4 years since the Fair Market Rent was set.
• If you filed an overcharge claim before December 20, 2000, but the new code is being applied to your case.

Roommates

• If you receive a letter from the landlord, landlord’s attorney or managing agent requesting information about how much you are charging your roommate.
• If you are asked by DHCR to fill out a form requesting information about how much you are charging your roommate.
• If you are facing eviction based on charging your roommate more than the “proportionate share of rent.”

Appliance Surcharge

• If you receive a charge or notice of intention to charge for use of a washing machine, dryer or dishwasher, especially if the landlord has been aware of the appliance and permitted its use without such a charge.

Non-Primary Residence

• If your landlord is seeking not to renew your lease based on “your failure to maintain the apartment as primary residence,” especially if the grounds for non-renewal is based on you having legally subletted the apartment.

Tenant Harassment of Landlord

• If you are facing eviction due to “harassing” your landlord.

Reduction of Services

• If you and your neighbors are forced to hire an architect or engineer to counter a landlord-hired architect or engineer’s affidavit of restoration of services following a Rent Restoration Order.
• If you have a reduction of services complaint denied due to more than 4 years having passed since the condition arose without you complaining.

MCIs (major capital improvements)

• If you and your neighbors are forced to hire an architect or engineer to counter a landlord-hired architect or engineer’s affidavit that the MCI has been properly completed.

For a complete listing of the new code changes in English or Spanish, send a self-addressed stamped envelope to: Met Council on Housing, attn: D. Powell/DHCR Code changes, 339 Lafayette St., New York, NY 10012. For further questions call the Met Council hotline Monday or Wednesday from 1:30-5 p.m.: (212) 979-0611.