No Triple Damages Where Landlord Bought Building in Foreclosure Sale

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant, disallowed some of the individual apartment improvement (IAI) increases claimed by landlord, and ordered landlord to refund $1,302, including interest. Tenant appealed and lost. Tenant claimed that triple damages should have been applied, and that the DRA improperly allowed an IAI increase for wood floor staining. The DHCR noted that since landlord bought the building in a mortgage foreclosure sale and rent history records weren't available, triple damages didn't apply under Rent Stabilization Code Section 2526.1(f)(i). Also, since landlord proved that about 75 percent of claimed IAI costs had been expended, this rebutted the presumption of willfulness. Tenant also incorrectly claimed that the DRA included floor staining in the approved IAI costs.

Barber: DHCR Adm. Rev. Docket No. FO210058RT (11/3/17) [3-pg. doc.]