No Triple Damages in Case Involving J-51 Building and Mistaken Deregulation

Tenant complained in 2017 of rent overcharge and improper deregulation of her apartment, located in a building receiving J-51 tax benefits. The DRA ruled for tenant and ordered landlord to refund $12,727 including triple damages, minus a $5,000 refund already made. Landlord appealed the triple damages and won. Landlord admitted that the case involved a mistaken deregulation in 2009 during the building's J-51 benefit period. Landlord pointed out that in other cases issued after Roberts v. Tishman Speyer Props., such mistaken deregulation was found not to be willful. Also, tenant's overcharge complaint was filed before HSTPA changed the Rent Stabilization Law's triple damage provisions, and landlord made a refund in response to the complaint. The DHCR agreed that landlord's refund was timely and the triple damages didn't apply to this case. The total overcharge with interest was $5,347, most of which already had been refunded.

Silver Lake Associates: DHCR Adm. Rev. Docket No. JO310022RO (5/25/21) [2-pg. doc.]