New Landlord Immediately Refunded Overcharge with Interest

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered a refund of $37,837 plus interest in the amount of $12,414. The overcharge was based on an outstanding rent reduction order issued in 2008, more than four years before tenant filed his complaint. Landlord had already refunded the overcharge by the time the DRA issued its decision, so no further refund was needed. Tenant appealed and lost. Tenant claimed that the DRA incorrectly determined that landlord bought the building in a foreclosure sale and that therefore triple damages should apply for willful overcharge. But documents showed that the building was purchased in 2013 in a foreclosure sale. And, pursuant to Policy Statement 89-2, landlord was excused from any finding of willful overcharge since it refunded the overcharge while tenant’s complaint was pending. Although landlord bought the building after the overcharge complaint was filed, it immediately refunded the overcharge plus interest to tenant in response to the complaint.

Carrion: DHCR Adm. Rev. Docket No. CX410025RT (6/10/15) [3-pg. doc.]