No Triple Damages for Collecting Disallowed Improvement Increase

Tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $2,800. This amount included interest for a four-year period of overcharge. Tenant appealed, claiming that the DRA should have imposed triple damages because the overcharge was willful. Tenant argued that landlord improperly treated some repairs as apartment improvements and charged tenant for the cost. The DHCR ruled against tenant. Landlord was properly granted a rent increase based on allowable apartment improvements. The DRA had disallowed some rent increases for items costing $1,800 because they were repair items. But landlord had reasonably believed that the repair items should be included in the improvement cost because they were done in connection with the improvements. So the overcharge wasn't willful.

Mitchell: DHCR Adm. Rev. Dckt. No. JI410042RT (1/12/00) [2-pg. doc.]