Overcharge Collected Despite Knowledge of Rent Reduction Order

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $7,926, including triple damages. Landlord appealed and lost. Landlord claimed that there was no willful overcharge because it immediately credited tenant $2,016 and reduced his rent upon discovery of the overcharge. But, despite the rent credit, the DHCR found there had been a willful overcharge. Landlord knew about a prior rent reduction order in April 2015 when tenant moved in, yet charged tenant $50 more per month than the frozen rent amount. Despite a failed application to restore rent, landlord further increased tenant's rent in 2017, resulting in additional overcharges. Landlord even continued to deny the overcharge when it first received tenant's rent overcharge complaint. The DHCR did reduce the total refund due based on the credit landlord had given tenant.

Parkash2 165, LLC: DHCR Adm. Rev. Docket No. GU610003RO (7/8/19) [2-pg. doc.]