Landlord Can't Avoid Triple Damages Through Monthly Rent Credit

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $25,458, including triple damages. Landlord appealed and lost. Landlord claimed that it had reduced tenant's rent before the DRA issued its order and was giving tenant monthly credits in the amount of tenant's current full monthly rent. DHCR Policy Statement 89-2 provides for a waiver of triple damages if landlord reimburses tenant for rent overcharges after receiving notice from the DRA of tenant's complaint. This requires an immediate full refund, not partial credits over a period of time. Since tenant didn't receive a full reimbursement before the DRA ruled on his complaint, the overcharge was correctly deemed willful and triple damages were properly imposed.

Prana Growth Fund I, LP: DHCR Adm. Rev. Docket No. AV410027RO (6/3/13) [10-pg. doc.]