Landlord Collected Rent Increases Despite Rent Reduction Order

Rent-stabilized tenant complained of a rent overcharge based on the existence of a prior rent reduction order issued on May 3, 2006. The DRA ruled for tenant. Because the rent had not been restored by a later DHCR order, the rent reduction remained in effect and the rent remained frozen. Landlord appealed and lost. Landlord claimed that tenant paid a preferential rent when she moved into the apartment that was less than the prior tenant's rent. Landlord also had lowered tenant's rent in 2009 to the amount charged in 2004. But the legal base date rent was $1,440 and the rent reduction order in effect on that date limited collection of monthly rent to $1,312. So tenant was entitled to a refund of an overcharge equal to the monthly difference between these amounts. The assessment of triple damages for willful overcharge also was appropriate under these circumstances.

Dorchester LLC: DHCR Adm. Rev. Docket No. ZD710063RO (3/5/13) [4-pg. doc.]