No Triple Damages for Overcharge Based on Prior Rent Reduction Order

LVT Number: #26054

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $147,585, including triple damages. Landlord appealed and won, in part. The overcharge finding was based on an outstanding 1989 rent reduction order, which froze the apartment rent. Landlord wasn't aware of the rent reduction order but had now obtained a rent restoration order from the DHCR in October 2014 based on restoration of services. The DHCR found that landlord had rebutted the presumption of willful rent overcharge and revoked the triple damages.

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $147,585, including triple damages. Landlord appealed and won, in part. The overcharge finding was based on an outstanding 1989 rent reduction order, which froze the apartment rent. Landlord wasn't aware of the rent reduction order but had now obtained a rent restoration order from the DHCR in October 2014 based on restoration of services. The DHCR found that landlord had rebutted the presumption of willful rent overcharge and revoked the triple damages. The total overcharge with interest was reduced to $78,703. 

545 West 146th Street, Inc.: DHCR Adm. Rev. Docket No. CQ410009RO (1/21/15) [3-pg. doc.]

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