Landlord Can Challenge DHCR's Award of Triple Damages

Tenant complained of a rent overcharge. The DHCR ruled for tenant and awarded triple damages for willful rent overcharge. Landlord argued that the DHCR didn't consider proof of apartment improvements in deciding whether the overcharge was willful. The court ruled against landlord. Landlord filed another appeal and won. Tenant's complaint had been filed on July 17, 2002. The base date for purposes of calculating any rent overcharge therefore was July 17, 1998. Landlord claimed that it had completed apartment improvements by Feb. 13, 1998, prior to the base date. The DHCR had ruled that it couldn't consider proof of the improvements because they were done more than four years before tenant filed his complaint. But the four-year rule limits only the time within which an apartment's rent can be challenged. It doesn't limit the period in which landlord can draw proof to explain its actions. The appeals court sent the case back to the DHCR for further consideration of whether the overcharge was willful.

H.O. Realty Corporation v. DHCR: NYLJ, 10/22/07, pg. 18, col.1 (App. Div. 1 Dept.; Mazzarelli, JP, Sullivan, Sweeny, Malone, Kavanagh, JJ)