No Willful Overcharge for Deemed Renewal Lease Increase

Rent-stabilized tenant complained of rent overcharge. The DRO ruled against tenant, who appealed and won. The DHCR ordered landlord to refund $6,080, including triple damages. Landlord sought reconsideration of the DHCR's decision. Landlord claimed that there was no willful overcharge because it had deemed a lease renewal pursuant to a Rent Stabilization Code provision that was later invalidated by a court. The DHCR ruled for landlord. Landlord relied on the Rent Stabilization Code, which wasn't invalidated by case law until sometime after landlord collected rent increases based on tenant's deemed lease renewal. The rent overcharge was reduced to $2,620.

47 East 81 Realty, LLC: DHCR Adm. Rev. Docket No. BX41001RK (7/15/14) [4-pg. doc.]