DHCR Defines "Willfulness," Awards Triple Damages

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and imposed triple damages for willful rent overcharge. The total amount to be refunded was $1,000. Landlord appealed, claiming that there was no willful overcharge. The monthly overcharge in question was $20. The DHCR ruled against landlord. Willfulness was defined as having mere "reason to know" that there is an overcharge. And willful overcharge is presumed under the Rent Stabilization Code. Landlord was on notice that the costs ultimately disallowed by the DRA, of painting and of nonexistent light fixtures, shouldn't have been included in prior landlord's calculation of a 1/40th rent increase. So triple damages were properly awarded.

Citadel Estates, LLC: DHCR Adm. Rev. Docket No. YG210048RO (12/3/10) [2-pg. doc.]