No Triple Damages Where Issue Was Initial Rent

(Decision submitted by Martin J. Heistein, of the Manhattan law firm of Belkin Burden Wenig & Goldman, LLP, attorneys for the landlord.) Tenant complained of a rent overcharge. He moved into the apartment in September 1987 at a monthly rent of $582.50. He moved out two years later. Landlord advised the DRA that the apartment had been decontrolled in 1986 and that tenant was the first rent-stabilized tenant. The DRA converted tenant's complaint to a fair market rent appeal and ruled for tenant. The DRA reduced the rent to $354.43 and awarded tenant triple damages. Landlord appealed, claiming there was no willful rent overcharge. The DHCR ruled for landlord. If tenant hadn't challenged the first stabilized rent, it would have become the legal base rent. Since tenant did challenge the first rent, tenant was entitled only to a refund or credit for the amount collected in excess of the fair market rent. This is considered a rent adjustment, not an overcharge.

MM&I Realty Co.: DHCR Adm. Rev. Dckt. No. GC 210160-RO (11/21/95) [4-page document]