Final Notice of Treble Damages Wasn't a Rent Overcharge Determination

Rent-stabilized tenant complained to the DHCR of rent overcharge in 2014. The DRA found no overcharge and ruled against tenant. Tenant appealed and lost. The four-year base date rent was $810.42. The rent was later increased to $818.52, and collectibility was frozen at that amount due to a DHCR service/rent reduction order that became effective after the base date. Although landlord obtained additional lawful rent increases upon further lease renewal, no rent increase was collected while the rent reduction order remained in effect. Tenant mistakenly interpreted a Final Notice of Treble Damages issued while the overcharge case was pending to be a rent overcharge order. This Final Notice wasn't an order or a formal finding. The Notice was simply to notify landlord that triple damages would be imposed on any overcharges if landlord couldn't rebut the presumption of the willfulness of such overcharges. The DRA wasn't bound by the tentative amounts set forth on the Final Notice, and correctly found there was no overcharge based on all the proof in the record.

Lipton: DHCR Adm. Rev. Docket No. JW210038RT (4/13/22)[3-pg. document]