No Triple Damages Where Rent Arrears and Credit Were Greater Than Overcharge

Rent-stabilized tenant complained to the DHCR of rent overcharge, based on landlord's collection of the full legal regulated rent from tenant while a prior DHCR rent reduction order remained in effect. The DRA ruled for tenant, finding that the base rent date was Oct. 19, 2014, that the legal regulated rent on that date was $1,453, and that the collectible rent was $264 based on the rent reduction order that remained in effect until March 1, 2021. The DRA directed landlord to refund a total of $61,641, including interest.

Tenant appealed and lost. Tenant claimed that triple damages should be assessed for willful rent overcharge and that landlord's partial refund in March 2023 didn't rebut the presumption of willfulness. The DHCR disagreed. Rent arrears and the rent credit posted by landlord in tenant's rent ledger were more than the actual rent overcharge incurred. So the DRA reasonably determined that no triple damages should be assessed. The rent arrears acted as a refund made prior to issuance of the DRA's order and rebutted the presumption of willful rent overcharge. 

Nunez: DHCR Adm. Rev. Docket No. MO610021RT (9/10/24)[3-pg. document]