Overcharge Caused by Rent Reduction Order

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and reduced his rent based on an outstanding rent reduction order. Landlord was ordered to refund the overcharge with triple damages. Landlord appealed and lost. Landlord argued that the prior tenant’s monthly rent was $2,022. When landlord added a 20 percent vacancy lease, tenant’s initial legal rent was $2,427. But landlord charged tenant an initial rent of only $2,100. So this became the legal regulated rent under the DHCR’s waiver doctrine. Triple damages were correctly applied because the rent overcharge was caused by a services rent reduction order and landlord was advised of this in a triple-damage notice sent by the DRA. The overcharge wasn’t caused by landlord’s reliance on a prior incorrect agency interpretation.

Vanderbilt Avenue Associates LLC: DHCR Adm. Rev. Docket No. DP210029RO (7/1/15) [2-pg. doc.]