No Triple Damages for Overcharge Based on Rent Reduction Order

Rent-stabilized tenant complained in 2017 of rent overcharge based on landlord's failure to comply with a 2006 rent reduction order. The DRA ruled for tenant and ordered landlord to refund $38,114, including interest and triple damages and after deducting $11,860 in unpaid rent. Landlord appealed, objecting to the imposition of triple damages.

The DHCR ruled for landlord. Although landlord hadn't provided a full refund of the overcharge plus interest, the facts of the case warranted no triple damages. Tenant received DRIE benefits and his portion of the rent was frozen by the DOF at a rate below what was collectible under the rent reduction order. The nature of the rent calculations in connection with the DRIE contributions made it difficult to assess the amount of any refund or portion thereof due to tenant. Landlord also pointed out that the DHCR had an unsettled policy as to how to award overcharges in such cases. In a prior case involving the same building, the DHCR had ordered a refund of some overcharges to a tenant through rent credits and a return to DOF of a DRIE credit. The total refund was reduced to $17,326.

WE Audubon 100 LLC: DCHR Adm. Rev. Docket No. IX410013RO (9/1/21)[3-pg. document]