No Triple Damages Where Landlord Made Apartment Improvements

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $161,644, including triple damages. Landlord appealed and won, in part. The DRA had disallowed any rent increase for apartment improvements costing $56,000 because landlord submitted purchase orders and invoices but no proof of payment. Landlord pointed out that the invoices had been marked "paid" by its management office. The DHCR found that landlord should get some increase for the improvements based on "all factors bearing upon the equities involved" and granted a rent increase based on half of the claimed apartment improvement cost. And since landlord clearly believed that it had a justified rent increase based on apartment improvements, there was no willful overcharge. The DHCR revoked the triple damages and reduced the total overcharge to $47,000.

Clermont York Associates: DHCR Adm. Rev. Docket No. BM410028RO (12/2/13) [3-pg. doc.]