DHCR Didn't Reduce Rent Overcharge Finding Based on Unpaid Rent

Rent-stabilized tenant complained to the DHCR of rent overcharge. The DRA found that an overcharge resulted from landlord's rent increase of $16.29 per month to tenant's vacancy lease based on an unproven individual apartment improvement (IAI).  The DRA ruled for tenant and ordered landlord to refund $1,461, including triple damages. The refund covered rent overcharges collected through June 2021, which was the date of tenant's last rent payment.

Landlord appealed and lost. Landlord argued that the DRA should have extended its calculations through the end of 2022 and claimed that there was no willful overcharge. The DHCR found that an overcharge complaint to the DRA didn't allow for landlord's counterclaim, as it would in court. Any rent owed may still be offset by the complaining tenant or the owner, or sought by landlord in court. As to the triple damages, overcharges are presumed to be willful under RSC Section 2526.1(a)(1) and DHCR Policy Statement 89-2. An overcharge need not be deliberate or systematic to justify triple damages.  

New Savoy Park Portfolio LLC: DHCR Adm. Rev. Docket No. LP410027RO (6/28/23)[2-pg. document]