Landlord Must Refund $118,730 Based on 1989 Rent Reduction Order

Tenant complained to the DHCR of rent overcharge in 2018. The DRA ruled for tenant. Although there was a four-year lookback period, an outstanding 1989 rent reduction order required the DRA to freeze tenant's $1,435 rent at the prior rent level of $325 for the period between Aug. 1, 2014, through Oct. 21, 2022. As a result, landlord was ordered to refund $118,730 to tenant, including triple damages and interest. Landlord was also directed to file missing annual rent registrations for the years 2015-2022.

Landlord appealed and lost. Landlord contested the assessment of triple damages and said that the DRA ignored actual rent payment made by tenant. But RSC Section 2526.1(a)(2)(v) and the 2010 ruling of New York's highest court in Cintron v. Calogero required assessment of triple damages since landlord didn't rebut the presumption of willful rent overcharge. The age of the rent reduction order, the fact that there had been intervening tenancies, that fact that the prior tenant dropped a noncompliance proceeding, the fact that the complaining tenant didn't allege reduced services, and the fact that landlord had made the necessary repairs all were irrelevant. The only way to restore the rent is to file a rent restoration application with the DHCR and obtain an order granting the application. Landlord had owned the building since at least 1989 so should have been aware of this. Tenant also proved that she had paid monthly rent of $1,435 or more during the period in question.

4800 14th Avenue Mgmt.: DHCR Adm. Rev. Docket No. LO210021RO (6/20/23)[3-pg. document]