Landlord Can't Stop Charging Preferential Rent to Tenant

Tenant complained of a rent overcharge. The DRA ruled for tenant, finding that the overcharge was willful. Landlord appealed, claiming that it merely stopped charging tenant a preferential rent after the last renewal lease expired and that it was entitled to collect the legal regulated rent. Landlord claimed that there was no overcharge and certainly no willful overcharge. The DHCR ruled for landlord in part. Landlord can't stop charging a preferential rent. Tenant's leases didn't make clear that the rent charged was preferential. But the overcharge wasn't willful. Landlord collected only legal rent increases over the legal regulated rent, always registered the rent as preferential, and there would be no overcharge but for the fact that landlord didn't continue the preferential rent under tenant's lease renewal. The triple damages were revoked.

Nigro: DHCR Admin. Rev. Dckt. No. OI410036RO (3/5/02) [3-pg. doc.]