No Triple Damages Where Rent Arrears Far Exceeded Overcharge Finding

Rent-stabilized tenant complained to the DHCR of rent overcharge. The DRA ruled for tenant, finding a total overcharge with triple damages of $102.51. Since tenant owed $36,791 to landlord in back rent, no refund was due to tenant. Landlord appealed and won. Landlord argued that the one-month rent overcharge of $34.17 should be applied as a credit to past-due rent and that there should be no finding of triple damages. The DHCR agreed. Under DHCR policy, when a tenant makes a rent payment larger than the actual amount charged, the payment is first applied to the month the payment is received and then the excess is applied against the arrears for the prior months. Based on that policy, there was no overcharge since $2,278.13 should've been applied as payment for October 2022 and the extra $34.17 should've been applied against rent arrears. The landlord's rent ledger reflects that this is how it applied the payment, and the DRA should've done the same. 

447-448 Owners Corp.: DHCR Adm. Rev. Docket No. LU410012RO (3/12/24)[2-pg. document]