No Waiver Under HSTPA of Triple Damages for De Minimis Overcharge

Tenant complained to the DHCR of rent overcharge, claiming that she moved into the apartment in 1999, that her current share of her subsidized rent was $199 per month, and that landlord was improperly charging her for electricity. Tenant received housing assistance from the NYCHA voucher program. Landlord claimed that the DHCR previously had granted it permission to terminate electrical inclusion in tenant's rent. The DHCR agreed but still found a total rent overcharge of $493 with triple damages.

Landlord appealed and lost. It claimed that various rent credits given to tenant over several years cancelled out any overcharges for those months. Landlord also argued that any overcharge was de minimis and therefore not willful. 

The DHCR disagreed. Landlord's rent ledger reflected total monthly charges well in excess of the legal rent calculated by the DRA. So, the purported rent credit given tenant was meaningless when compared to the rent calculated by the DRA and didn't offset the overcharges that were based on a lower rent than that reflected in the ledger. Also, under HSTPA, overcharging was willful and triple damages must be applied. 

Promenade Global, LLC: DHCR Adm. Rev. Docket No. MS410027RO (12/9/24)[2-pg. doc.]