No Triple Damages Where Landlord Refunded More Than Amount Overcharged

October 23, 2024

LVT Number: #33404

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant, finding that the total overcharge with triple damages was $140,625. But since landlord had already refunded $143,891, no refund was ordered. Landlord appealed and contested the triple damages award. The DHCR agreed. Since tenant's complaint was filed before HSTPA did away with the "safe harbor" rule under Policy Statement 89-2, landlord could rebut the presumption of willful overcharge by giving tenant a refund with interest within the period to respond to tenant's complaint.

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant, finding that the total overcharge with triple damages was $140,625. But since landlord had already refunded $143,891, no refund was ordered. Landlord appealed and contested the triple damages award. The DHCR agreed. Since tenant's complaint was filed before HSTPA did away with the "safe harbor" rule under Policy Statement 89-2, landlord could rebut the presumption of willful overcharge by giving tenant a refund with interest within the period to respond to tenant's complaint. Here, landlord had refunded the full overcharge and there were some outstanding rent arrears. The total overcharge, with interest, was reduced to $101,000. 

OZ Realty LLC: DHCR Adm. Rev. Docket No. LX610004RO (9/18/24)[4-pg. document]

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