DHCR Correctly Found Overcharge Was Willful and Imposed Triple Damages

Rent-stabilized tenant complained of rent overcharge. The DHCR ruled for tenant. Landlord filed an Article 78 appeal, and the court sent the case back to the DHCR for reconsideration. The DHCR appealed and won. The appeals court found that the DHCR correctly calculated the legal regulated rent by taking the base rent from four years before tenant filed the overcharge complaint and then adding all subsequent lawful rent increases. Landlord's rent registration statements recorded the actual amount of rent charged to tenant and weren't based on fraudulent leases. The lower court incorrectly ordered the DHCR to reconsider its finding that the overcharge was willful. That issue wasn't raised before the DHCR, and landlord didn't present sufficient proof before the DHCR to rebut the presumption of willfulness under Rent Stabilization Law Section 26-516(a).

Enriquez v. DHCR: 166 A.D.3d 404, 2018 NY Slip Op 07353 (App. Div. 1 Dept.; 11/1/18; Renwick, JP, Richter, Manzanet-Daniels, Gische, Tom, JJ)