No Triple Damages for Collection of Forfeited MCI Increase

May 19, 2014

LVT Number: #25530

Rent-stabilized tenant complained of willful rent overcharge. The DRA ruled against tenant, who appealed and lost. Previously, the DHCR granted landlord's application for an MCI rent hike, made effective March 1, 2007, but not collectible until Feb. 1, 2010. But landlord failed to collect the MCI increase in a timely manner and therefore forfeited its right to collect the increase at all. Still, since landlord had been entitled to the forfeited rent increase, any resulting overcharge wasn't willful. The DRA correctly declined to assess triple damages. 

Rent-stabilized tenant complained of willful rent overcharge. The DRA ruled against tenant, who appealed and lost. Previously, the DHCR granted landlord's application for an MCI rent hike, made effective March 1, 2007, but not collectible until Feb. 1, 2010. But landlord failed to collect the MCI increase in a timely manner and therefore forfeited its right to collect the increase at all. Still, since landlord had been entitled to the forfeited rent increase, any resulting overcharge wasn't willful. The DRA correctly declined to assess triple damages. 

Dotson: DHCR Adm. Rev. Docket No. AQ410043RT (3/18/14) [2-pg. doc.]

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