Landlord Didn't Refund Known Overcharge to Tenant

Tenant complained of a rent overcharge. The DRA ruled for tenant but found no willful overcharge. Tenant appealed, claiming that although landlord made a refund in response to tenant's complaint, landlord had knowingly collected the overcharge. The DHCR ruled for tenant. Landlord had thought the building's J-51 benefits ended in 1991 and began charging higher rents after that. But the benefits actually extended to 1997. Landlord knew this because other tenants had complained, and landlord was directed by prior DHCR orders to refund overcharges. So landlord knew tenant was being overcharged but did nothing about it until tenant complained to the DHCR. The overcharge was willful, and triple damages were imposed.

DeFresco: DHCR Admin. Rev. Dckt. No. PF410050RT (8/8/02) [4-pg. doc.]