No Triple Damages for Landlord Confused About J-51 Program

Tenant complained of a rent overcharge. Landlord claimed that tenant's apartment wasn't subject to rent stabilization because the building's J-51 tax benefits had expired in 1988 before tenant moved in. While tenant's complaint was pending, landlord learned that the J-51 benefits actually didn't expire until June 1989. Since tenant moved into the apartment in 1988, she was rent-stabilized. Landlord offered to refund the overcharge to tenant at that point. Tenant refused to accept. The DRA ruled for tenant but found that the overcharge wasn't willful. Tenant appealed, claiming that landlord should have known when the J-51 benefits expired; therefore the overcharge was willful. The DHCR ruled against tenant. Landlord's claim of confusion as to the J-51 expiration date was believable. Under J-51, benefits end at some point based on tax rates, which aren't predetermined. The formula is complicated.

Hargrove/Bettina Equities: DHCR Adm. Rev. Dckt. Nos. JF410123RT/JF410297RO (1/11/96) [8-page document]