DHCR Mistakenly Omitted Triple Damages on Overcharge Award for Post-HSTPA Complaint

Rent-stabilized tenant complained in 2020 of rent overcharge. The DRA ruled for tenant in part, finding a rent overcharge of $9,081. But since landlord had already refunded $8,548 to tenant, landlord had to refund only another $2,796. The DRA didn't assess any triple damages since landlord had refunded a substantial portion of the overcharge while tenant's complaint was pending. Tenant appealed, claiming that she was entitled to triple damages for the overcharge.

The DHCR agreed. Effective June 14, 2019, the HSTPA's amendments to the Rent Stabilization Law eliminated any "safe harbor" for overcharge refunds. So landlord was responsible for payment to tenant of the overcharge plus triple damages for all periods after June 14, 2017, which was two years prior to passage of the HSTPA. Overcharges collected from May 1, 2016, through June 30, 2017, were assessed interest only. So the total overcharge with triple damages and interest was $24,097. Since landlord already had refunded $8,548, it owed tenant $15,548. 

Jung: DHCR Adm. Rev. Docket No. MQ410007RT (11/12/24)[3-pg. document]