No Triple Damages for Overcharge Resulting from Rent Reduction Orders

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $19,987, including interest. The DRA found that the overcharge resulted from a series of rent reduction orders that froze tenant's monthly rent at $607. Tenant received SCRIE benefits, so his portion of the reduced monthly rent was $199. The DRA directed landlord and tenant to contact the SCRIE program to determine what portion of the rent refund may be payable to SCRIE.

Landlord and tenant both appealed and lost. Tenant claimed that the overcharge was willful and that the DHCR should assess triple damages. But the overcharge stemmed from the rent reduction orders. Landlord applied for rent restorations shortly after tenant complained of rent overcharge, and the rent was restored. This showed that the overcharge wasn't willful. And, although landlord didn't pay tenant a full overcharge refund while the complaint was pending, the fact that tenant received SCRIE benefits made it hard to determine how much refund was due to tenant. Landlord claimed that the DRA ignored a $20,768 rent credit given to tenant while the overcharge complaint was pending. But landlord didn't show that the credit actually offset any rent arrears. 

Fernandez/WE Audobon 100 LLC: DHCR Adm. Rev. Docket Nos. GO410009RO, GN410052RT (11/30/18) [4-pg. doc.]