Overcharge Finding Revoked

Hempstead tenant complained of a rent overcharge. The DRA ruled for tenant, using the DHCR's default method and imposing triple damages. Landlord was ordered to refund $32,000. Landlord appealed, claiming that there was no overcharge. The DHCR ruled for landlord in part. Landlord had complied with prior DHCR orders on lease renewal complaints by reducing tenant's rent. So the overcharge wasn't willful, and the refund amount was reduced to $16,714. Since landlord hadn't submitted complete rent history records, the overcharge was still calculated using the DHCR's default method. Landlord then filed an Article 78 petition, claiming that the DHCR's decision was unreasonable. Landlord pointed out that it made repeated good-faith attempts to comply with the DHCR's requests for additional rent history documentation.

The court ruled for landlord and sent the case back to the DHCR for reconsideration. Although submitted late, all missing leases had been submitted to the DHCR. And landlord was understandably confused about what documents were needed since a prior DHCR decision concerning lease renewal indicated that the legal rent had been "established." Upon review, the DHCR found that there was no overcharge.

60 Hendrickson Avenue: DHCR Adm. Rev. Docket No. XB710011RP (5/5/09) [4-pg. doc.]