DHCR Applies Judicial Sale Default Formula

Tenant complained of a rent overcharge, and the DRA asked landlord for a rent history. Landlord claimed that it couldn't supply a complete rental history because leases were missing from the files when it took over the building from a receiver. The DRA found that tenant had been willfully overcharged, and landlord appealed. Landlord argued that the DRA should have accepted the papers it submitted as complete proof of the legal rent, and that any overcharge had been unintentional. The DHCR ruled for landlord, in part. It reduced the overcharge amount by applying the judicial sale default formula, which takes the understandable lack of rental records into account. The formula also absolved landlord of willfulness, eliminating the triple damages.

445 East 80th Street, Apt. 15A: DHCR Adm. Rev. Dckt. No. IH 410022-RP (9/14/94) [6-page document]