Garage Rent Overcharge Found Willful

Rent-stabilized tenant complained of a rent overcharge, claiming that landlord charged too much for tenant's parking space. The DRA ruled for tenant and imposed triple damages based on a finding of willful rent overcharge. Landlord appealed and lost. Landlord claimed that it believed in good faith that parking-space rents weren't rent stabilized, that it hadn't raised parking space rents for many years, and that it reduced tenant's rent as soon as advised to do so by the DRA. But it didn't matter whether landlord knew about the overcharge or intended to overcharge tenant. Landlord was notified of the overcharge claim by tenant's complaint and was later advised by the DRA that the building's initial and annual rent registration statements registered parking spaces and was asked to explain. Landlord stated that the parking space was commercial and continued to collect the overcharge for several months. So the DRA properly found that the overcharge was willful.

Mid Island LP: DHCR Adm. Rev. Docket No. XF110013RO (8/3/09) [2-pg. doc.]