Overcharge Finding Applied Triple Damages to Extended Look-Back Period

Tenant sued landlord, claiming rent overcharge and improper deregulation of his apartment. The court ruled for tenant, declaring that he was entitled to a rent-stabilized lease and an overcharge refund to be determined by a judicial hearing officer or special referee. Landlord appealed and lost. Landlord's receipt of J-51 tax benefits for the building conferred rent stabilization status on tenant's apartment, at least for the duration of his occupancy. Even if the building briefly lost its rent-regulated status under Rent Stabilization Law (RSL) Section 26-403(e)(2)(f) following a foreclosure and sale to the City of New York, by the time the building was sold to prior landlord, it had reverted to its rent-stabilized status under RSL Section 6-507. And this predated the building's receipt of J-51 benefits. The lower court correctly ruled that landlord's mistaken beliefs that prior landlord had withdrawn its J-51 application and that the court could disregard an outstanding DHCR rent reduction order failed to rebut the presumption of willful rent overcharge. So the lower court correctly ruled that triple damages were warranted. And, based on amendments to the rent stabilization law under the Housing Stability and Tenant Protection Act of 2019 (HSTPA), the overcharge period was now extended from four to six years before tenant complained.

Crockett v 351 St. Nicholas Ave. LLC: Index Nos. 10771, 159061/17, 2020 NY Slip Op 00240 App. Div. 1 Dept.; 1/14/20; Renwick, JP, Kapnick, Mazzarelli, Webber, JJ)