Roxborough Apt. Corp. v. Becker – Case Brief Summary (New York)

In Roxborough Apt. Corp. v. Becker, 11 Misc 3d 99, 816 N.Y.S.2d 810 (App Term, 1st Dept 2006), Appellate Term held that although the tenant charged his roommates a disproportionate share of the legal rent in violation of RSC § 2525.7, "the overcharges did not rise to a level of profiteering requiring eviction . . . without giving him an opportunity to cure" and that "the surcharge amounts, though not insubstantial, did not reflect commercial exploitation of the regulated tenancy" (Roxborough, 11 Misc 3d at 100-101, 816 N.Y.S.2d 810).

Although, the tenant in Roxborough charged three roommates a total of $ 2,100 per month when the legal regulated rent was only $ 1,954 per month, the tenant's mistaken belief that he was entitled to charge extra for services and amenities was not "palpably unreasonable" and the financial arrangements between tenant and his roommates were not actuated by "bad faith or an intent to profiteer" (id. at 100-101, 816 N.Y.S.2d 810).

The Roxborough court stayed execution of the warrant for 30 days affording the tenant a post-judgment cure period to provide refunds to his roommates (id. at 100, 816 N.Y.S.2d 810).