Landlord Relied on Prior DHCR Orders

Tenant complained of a rent overcharge, claiming that landlord didn't comply with prior rent reduction orders. The DRA ruled for tenant and found the overcharge was willful. The DRA ordered landlord to refund $32,000, including triple damages. Landlord appealed, claiming that among other things, it relied on prior DHCR orders that stated the amount of the legal rent for the apartment. The DHCR ruled for landlord in part. Tenant had filed complaints that landlord failed to renew her lease. In orders directing landlord to issue renewal leases, the DHCR stated the amount of the legal rent for the apartment. But these weren't rulings based on an overcharge claim and therefore didn't establish the legal regulated rent. However, in the absence of any other determination of the legal rent, it was reasonable for landlord to rely on the DHCR's prior rulings stating the amount of the legal rent. So the overcharge wasn't willful, and the refund was reduced to $13,700.

Monte Carlo, LLC: DHCR Adm. Rev. Docket No. WG710025RO (9/18/08) [6-pg. doc.]