Landlord Must Refund Overcharge Resulting from Rent Reduction Order

Rent-stabilized tenant complained of rent overcharge based on landlord's failure to comply with a prior DHCR rent reduction order. The DRA found that the legal base date rent was $1,135.18 per month. But the base date collectable rent was frozen at $1,053.53 based on the rent reduction order, and remained frozen until the rent was restored on July 1, 2016, when a rent restoration order was issued. So, the total overcharge owed to tenant was $980. No triple damages or interest was added.

Landlord appealed and lost. Landlord claimed that it had given tenant a rent credit in the amount of the overcharge in 2015, before tenant filed her overcharge complaint. But review of landlord's rent ledgers showed that, although landlord did in fact give tenant an overcharge credit in 2015, as of September 2021, the ledger still reflected a rent credit of $693.10 stemming from the 2015 rent credit. So the DRA's finding was correct. 

The Manor House, LLC: DHCR Adm. Rev. Docket No. KP210031RO (11/14/22)[2-pg. document]