Partial Rent Credit Doesn't Avoid Triple Damages

September 30, 2010

LVT Number: #22933

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $5,260, including triple damages. Landlord already had given tenant a rent credit of $3,500 toward the overcharge. Landlord appealed and lost, claiming that the overcharge wasn't willful since it gave tenant a credit for sums believed due. DHCR Policy Statement 89-2 permits landlords to avoid triple damages if landlord reduces tenant's rent within the time to answer the complaint if landlord makes a good-faith refund to tenant of all excess rent plus interest.

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $5,260, including triple damages. Landlord already had given tenant a rent credit of $3,500 toward the overcharge. Landlord appealed and lost, claiming that the overcharge wasn't willful since it gave tenant a credit for sums believed due. DHCR Policy Statement 89-2 permits landlords to avoid triple damages if landlord reduces tenant's rent within the time to answer the complaint if landlord makes a good-faith refund to tenant of all excess rent plus interest. Landlord didn't comply with these requirements. Landlord gave tenant a rent credit instead of a rent refund, didn't include interest, and didn't adjust tenant's rent or refund the overcharges within the time to interpose the answer.

94-16 34th Road LLC: DHCR Adm. Rev. Docket No. XL110050RO (7/27/10) [4-pg. doc.]

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