No Triple Damages After DHCR Denied Rent Increase for Repair Work

Tenant complained of a rent overcharge. Landlord claimed that it made apartment improvements costing $20,000 before tenant moved in. The DRA ruled for tenant and disallowed most of the costs claimed by landlord, finding that they were for repairs. The DRA found that the overcharge was willful and awarded triple damages. Landlord appealed. Landlord fully renovated tenant's apartment and believed that all of the costs could be included in a rent increase. Landlord argued that there was no willful overcharge. The DHCR ruled for landlord. Although the disallowed costs were for that portion of the work that was maintenance or repairs, landlord did the renovations in good faith and didn't do them just to try to get the rent over $2,000 for deregulation. Landlord proved that there was no willful overcharge.

27 Realty LLC/Kossman: DHCR Adm. Rev. Dckt. No. PD410009RK (5/29/01) [6-pg. doc.]