Landlord Willfully Overcharged DRIE Tenant

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund the overcharge with triple damages. Landlord appealed and lost. Landlord claimed that there was no willful overcharge, so no triple damages should apply. Landlord argued that any overcharge resulted from a complex calculation error based on several agency orders affecting tenant's rent. But most of the overcharge resulted from landlord's failure to comply with two DRIE orders over a period of 35 months. Landlord was on notice since May 2007 based on NYC Department of Finance orders that tenant's payable rent was frozen and couldn't be increased. Yet landlord continued to bill and collect the full rent from tenant despite receiving a tax abatement as a result of the DRIE orders. Landlord didn't adjust tenant's monthly rent until after receiving the DRA's final notice of imposition of triple damages, and didn't refund the overcharge until after the DRA ruled on the complaint.

BPIII-519 West 143 Street LLC: DHCR Adm. Rev. Docket No. AV410021RO (8/19/14) [2-pg. doc.]