No Triple Damages for Pre-HSTPA Overcharge Finding

(Decision submitted by Mary D. Milone, Esq. of the Manhattan law firm of Borah Goldstein Altschuler Nahins & Goidel, P.C., attorneys for the landlord.)

A Freeport, N.Y., tenant subject to rent stabilization under the ETPA complained to the DHCR of rent overcharge in 2015. The DRA ruled for tenant, finding that landlord collected an overcharge and that the overcharge was willful. The DRA directed landlord to refund $6,476 to tenant, including triple damages, and minus $3,530 already refunded. Landlord appealed, and argued that the triple damages award violated DHCR policy in effect when the complaint was filed. The DHCR ruled for landlord. Tenant acknowledged that landlord had refunded the full overcharge amount plus interest while tenant's complaint was pending. So, under DHCR Policy Statement 89-2, landlord rebutted the presumption of willful rent overcharge. The DHCR revoked the triple damages. And since the refund exceeded the total overcharge plus interest, no money was owed to tenant.

45 North Ocean Avenue, LLC: DHCR Adm. Rev. Docket No. LO710011RO (5/31/23)[2-pg. document]