Landlord Didn't Prove Overcharge Wasn't Willful

Tenant complained of a rent overcharge. The DRA ruled for tenant and found that the overcharge was willful. The DRA ordered landlord to refund $6,800, including triple damages. Landlord appealed, claiming that the DRA incorrectly included an overcharge for December 2006 in its calculations. Tenant didn't pay rent for that month. Landlord also issued a credit to tenant with interest and lowered tenant's rent as of December 2006. The DHCR ruled against landlord. Under DHCR Policy Statement 89-2, the agency won't impose triple damages if landlord gives tenant a full refund of all excess rent collected plus interest during the time afforded to answer tenant's complaint. But posting a rent credit to tenant's account didn't constitute a refund of the overcharge, so landlord didn't prove lack of willful overcharge. Landlord continued to accept rent from tenant after posting the credit against future rents to tenant's account.

237 Realty NY LLC: DHCR Adm. Rev. Docket No. VI410026RO (1/31/08) [2-pg. doc.]