Landlord Omitted Legal and Preferential Rents from One Lease

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $9,680, including triple damages for willful rent overcharge. Landlord appealed and won, in part. The DHCR agreed with landlord that the overcharge wasn't willful. The overcharge was based on landlord's failure to preserve the higher legal regulated rent after giving tenant a preferential rent in one lease. But review of the lease and registration history of the apartment showed that landlord made a good faith effort to preserve both the legal and preferential rents except for its omission from the base date renewal lease. So there was no willful conduct by landlord and the triple damages were revoked. The overcharge refund was reduced to $3,541.

Albert: DHCR Adm. Rev. Docket No. FP410048RO (1/9/18) [5-pg. doc.]