No Triple Damages for Overcharge Based Solely on Rent Reduction Order

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $33,432, including interest. Tenant appealed and lost. Tenant claimed that the overcharge was willful and that she should get triple damages. But triple damages won't be assessed on overcharges stemming solely from an outstanding rent reduction order that was effective prior to the base date over the overcharge proceeding when landlord restores services at issue prior to the issuance of the DRA’s order concerning the rent overcharge. In this case, tenant’s overcharge was based solely on an outstanding 1987 rent reduction order and landlord restored the services in question before the DRA ruled on tenant’s overcharge claim. 

Shapiro: DHCR Adm. Rev. Docket No. DW410044RT (4/20/16) [4-pg. doc.]