No Triple Damages for Overcharge Based on 14-Year-Old Rent Reduction Order

Hempstead tenant complained of a rent overcharge. The DRA ruled for tenant, finding a willful overcharge. Landlord appealed and won, in part. In April 1990, five years before tenant moved in, the DHCR had issued a rent reduction order for the apartment based on a building-wide reduction in required services. New landlord bought the building in 2004 and was unaware of the rent reduction order. Since all the complainant tenants had moved out by then, prior landlord may have neglected to file an application to restore rents. New landlord also had taken steps to provide extermination services, as required by the rent reduction order, and had filed a rent restoration application. Under the circumstances, there was no willful overcharge and treble damages were revoked.

Dorchester, LLC: DHCR Adm. Rev. Docket No. YC710003RP (4/15/10) [3-pg. doc.]