Matter of Condo Units, LP v. New York State Div. of Hous. & Community Renewal

In Matter of Condo Units, LP v. New York State Div. of Hous. & Community Renewal (4 AD3d 424 [2d Dept 2004]) a tenant brought an overcharge complaint with DHCR based on the landlord's failure to comply with a DHCR rent reduction order, which was issued prior to the four-year limitations period. The landlord challenged DHCR's consideration of the rent reduction order. On appeal, the Appellate Division, Second Department held: "While Administrative Code of the City of New York 26-516 (a) (2) precludes examination of the rent history of an apartment prior to the four-year period preceding the filing of a rent overcharge complaint , where a duty imposed prior to a limitations period is a continuing one, the statute of limitations is not a defense to actions based on breaches of that duty occurring within the limitations period . Thus, the DHCR properly considered the rent reduction order issued prior to the four-year limitations period, but still in effect at the time of the overcharge complaint, since it imposed a continuing obligation on the landlord to reduce rent" Id. at 424.