No Triple Damages Where Apartment Improvements Undisputed

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $45,000, including triple damages for willful overcharge. Landlord appealed and won, in part. Landlord argued that the prior apartment occupant from 2005 to 2008 was the building super, so the rent charged to tenant after that was a first rent not subject to challenge. Alternatively, landlord claimed that the DRA refused to allow any rent increase for individual apartment improvements made immediately before tenant moved in. Because the super paid rent, the apartment wasn't temporarily exempt and the rent paid by the super was the base rent. But landlord did submit proof of payment of over $15,000 for apartment improvements. The DRA discounted some additional insufficiently documented costs, but revoked the triple damages since the existence of the claimed improvements was undisputed. The total overcharge was reduced to $8,700.

Najjar: DHCR Adm. Rev. Docket No. ZB210004RO (4/13/11) [5-pg. doc.]