Overcharge Case Reopened to Consider Effect of Judicial Sale on New Landlord's Liability

Tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $14,700, including triple damages. Landlord appealed, and the case was reopened. Landlord argued that it wasn't responsible for overcharges collected prior to a bankruptcy sale, or for triple damages on such overcharges. Landlord had submitted to the DRA documentation that prior landlord obtained the building at a bankruptcy sale in June 2013. Landlord also pointed out that a 1999 DHCR order found that the building wasn't rent stabilized because it contained five apartments. The building became rent stabilized only when a sixth apartment was added in 2011. The DHCR sent the case back to the DRA to consider what the proper base rent date was for the apartment and whether triple damages should have been imposed. The DRA also didn't consider the effect of the judicial sale on the overcharge claim. Further fact-finding was needed. 

1357 Teller Avenue Realty LLC: DHCR Adm. Rev. Docket No. GU610032RO (6/13/19) [6-pg. doc.]