No Willful Overcharge Where Landlord Relied on DHCR Prior to Roberts

Tenant complained of rent overcharge. The DRA ruled for tenant and ordered a refund of $145, including interest, after landlord gave tenant a credit of $750. Tenant appealed and lost. Tenant claimed that the overcharge was willful and that the DHCR should have looked back more than four years to determine the legal rent due to landlord fraud. The DHCR found no indication of fraud in this case. Although the building was receiving J-51 tax benefits at the time, landlord deregulated the apartment in 2009 based on a prior DHCR determination that the continued receipt of J-51 benefits didn’t prevent high-rent, high-vacancy deregulation. Given the “unexpected change in the law” after the Court of Appeals decision in Roberts v. Tishman Speyers, and given there was no fraudulent scheme to deregulate, there was no fraud and no willful rent overcharge. 

Blasio: DHCR Adm. Rev. Docket No. CV410043RT (6/22/15) [3-pg. doc.]