Partial Refund Insufficient to Prevent Triple Damages

Tenant complained of rent overcharge and improper apartment deregulation. The DRA ruled for tenant and ordered landlord to refund $13,000, including triple damages. Landlord appealed and lost. A pre-base date lease with a $2,000 rent didn't deregulate the apartment because the building was receiving J-51 tax benefits at that time. The J-51 tax benefits expired on Dec. 1, 2012. Before the expiration date, landlord gave tenant a three-year lease for $1,350 per month in October 2012. This became the base date rent-stabilized rent because landlord didn't preserve any higher rent in that lease. The DRA also correctly froze the collectible rent at $1,350 based on landlord's failure to register beginning in 2013. The fact that landlord made a partial refund to tenant without interest while the complaint was pending was insufficient to rebut the presumption of willful rent overcharge. 

Tessler: DHCR Adm. Rev. Docket No. HM210001RO (10/9/19) [3-pg. doc.]