Landlord Who Made Full Overcharge Refund to Tenant Avoided $100K Triple Damages

Rent-stabilized tenant complained to the DHCR of rent overcharge. The DRA ruled for tenant and found that there was a total overcharge of $197,245, including triple damages. The DRA noted that landlord had already made a $79,000 refund. Landlord appealed and disputed the assessment of triple damages. Landlord had issued a refund check to tenant in May 2022 in the amount of $79,579. The refund was issued before landlord filed its answer to tenant's complaint and 10 months before the DRA issued its order. The DHCR ruled for landlord. DHCR Policy Statement 89-2, in effecct at the time that tenant's overcharge complaint was filed, states that a landlord can demonstrate a lack of willfulness and avoid liability for triple damages by adjusting the rent on its own within the time afforded to furnish the DHCR with an initial response to the overcharge complaint. Landlord proved it had sent tenant a full refund with interest by this time. Upon recalculation, landlord owed tenant just $5,900 in interest.

534 West 178 Equities, LLC: DHCR Adm. Rev. Docket No. LQ410002RK (8/22/23)[2-pg. document]