No Guidelines Increase on Top of RRRA Vacancy Increase

Tenant complained of a rent overcharge. The DRA ruled for tenant, found that the overcharge was willful, and ordered landlord to pay triple damages. Landlord appealed. Landlord said it was confused and thought that Rent Guidelines Board Order (RGBO) No. 29 allowed it to collect the statutory 20 percent vacancy increase under the RRRA plus a 4 percent guidelines increase. The DHCR ruled against landlord. RGBO No. 29 clearly states that guidelines increases are permitted only for renewal leases. And the DRA sent landlord a final notice warning that the overcharge was due to collecting the guidelines increase and stating that triple damages would be imposed for this.

342 W. 30th St. Realty Corp.: DHCR Admin. Rev. Dckt. No. OE410067RO (10/3/01) [2-pg. doc.]