New Landlord Must Pay Triple Damages Even if Prior Landlord Collected Overcharge

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant, applied a six-year lookback period, and ordered landlord to refund $16,000, including triple damages. Landlord appealed and lost. Landlord disputed the triple damages, and argued that it recently bought the building, that any overcharge resulted from miscalculation by prior landlord, and that the prior landlord collected any overcharge. The DHCR pointed out that, under Rent Stabilization Code Section 2526.1(f)(2)(i), current landlords are responsible for overcharge penalties, including those collected by prior landlord, as well as triple damages. It was also current landlord's responsibility to obtain rent history documentation from prior landlord. Except in the case of a judicial sale, the lack of documentation wasn't a defense to an overcharge claim. The Housing Stability and Tenant Protection Act of 2019 stated that triple damages applied to landlords that bought buildings "lacking first-hand knowledge of rental history."

288-295 Maple Holding LLC: DHCR Adm. Rev. Docket No. HV210229RO (1/1/20) [3-pg. doc.]