$75,000 Default Method Overcharge Finding Based on Landlord's Failure to Answer Complaint

Rent-stabilized tenant complained to the DHCR of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $74,420, including triple damages. The overcharge was determined based on the Rent Stabilization Code's default formula because landlord didn't respond to notice of tenant's complaint and produce rent history records.

Landlord appealed and lost, claiming that it hadn't received certain notices of the overcharge case from the DRA, and that it had in fact filed an initial answer. The DHCR rejected landlord's claim, finding no record of landlord's claimed answer in the DRA file. Landlord showed that it delivered a copy of its answer to the DHCR's Brooklyn Borough Rent Office. But, as notice on the DHCR's notice of tenant's complaint, answers must be submitted to the agency's Gertz Plaza, Queens office. Before issuing its decision, the DRA also had sent a notice of triple damages to landlord at the address it had provided to the DHCR.

Renaissance Equity Holding: DHCR Adm. Rev. Docket No. LX210021RO (3/18/24)[3-pg. document]