Continued Collection of Rent Increase During Rent Freeze Required Triple Damages

Tenant complained to the DHCR in May 2019 of rent overcharge. She claimed that an outstanding rent reduction order had been issued and made effective on Sept. 1, 2025, without a proper reduction in her rent. The DRA ruled for tenant. Although the rent had been restored by DRA order made effective on July 1, 2022, landlord had improperly collected rent increases while the rent was frozen. So the total overcharge was $2,788, including interest and triple damages, and minus a refund and/or underpayment by tenant.

Landlord appealed and lost, claiming that no triple damages should have been applied since landlord made a refund in response to tenant's rent overcharge complaint. DHCR Policy Statement 89-2 was in effect at the time that tenant's complaint was filed. But tenant continued to pay the higher rent during the period April 1, 2016, through March 31, 2018, without any return of checks or additional refund or credit offered to tenant. So landlord didn't meet the requirements of Policy Statement 89-2 to avoid triple damages. And subsequent underpayments by tenant didn't constitute timely refunds.

South Pierre Associates, LLC: DHCR Adm. Rev. Docket No. LT410002RO (10/24/23)[3-pg. document]