Landlord Mistakenly Deregulated J-51 Building Apartment Before 2009

Rent-stabilized tenant complained of rent overcharge in 2017. The DRA ruled for tenant and directed landlord to refund $11,308, including interest and triple damages. Landlord appealed and won in part. Landlord had mistakenly deregulated the apartment while collecting J-51 tax benefits prior to the Court of Appeals 2009 ruling in Roberts v. Tishman Speyer Properties LP. Roberts and later cases had rejected triple damages based on market rents charged in accordance with DHCR rules and regulations before 2009. In addition, landlord had refunded overcharges with interest for the period in question and adjusted tenant's rent prior the issuance of the DRA's order. So, under pre-HSTPA law, landlord had rebutted the presumption of willful overcharge and triple damages were revoked.

Silver Lake Associates: DHCR Adm. Rev. Docket No. JM410016RO (8/9/21)[3-pg. document]