Landlord Must Refund Overcharges to All Tenants Even Though Only One Complained

Tenant complained of rent overcharge and improper deregulation of a rent-stabilized apartment. Tenant moved into the apartment on July 15, 2014, under a one-year lease for $2,600 per month. The DRA ruled for tenant and ordered landlord to refund $49,000, including interest. No willful overcharge was found.

Landlord and tenant both appealed and lost. Landlord claimed that, since only one of the three tenants on the lease complained of overcharge, only a portion of any full overcharge should be refunded and only to the complaining tenant. But Rent Stabilization Code Section 2526.1(b) provides that the DHCR shall determine the landlord's liability between or among two or more tenants during their occupancy and, at its discretion, may require landlord to make diligent efforts to locate prior tenants who are not parties to the proceeding, and to make refunds to such tenants. So landlord must refund the full rent overcharge determined, to be divided among the three tenants.

Tenant, in his PAR, claimed that the overcharge was willful. But the DHCR noted that landlord made a refund during the time permitted, so the DRA correctly determined that no triple damages applied.

Garcia/Weinstock: DHCR Adm. Rev. Docket Nos. GO210051RT, GO210019RO (12/6/18) [6-pg. doc.]