Proceeding Initiated by TPU Didn't Deprive Landlord of Due Process

The Tenant Protection Unit (TPU) initiated a rent overcharge proceeding that challenged individual apartment improvements (IAIs) claimed by landlord. When the matter wasn’t resolved, TPU forwarded the case to the DRO, which found an overcharge and ordered landlord to refund $57,418 to tenant, including triple damages and interest.

Landlord appealed and lost. Landlord claimed that TPU mistakenly disallowed $33,000 in IAIs and that it was unlawful for the DRO to commence a rent overcharge proceeding without sending landlord a written complaint specifying the grounds for the complaint and giving landlord a chance to respond.

The DRO ruled against landlord, who appealed and lost. The DRO disallowed only $6,550 of landlord’s claimed IAI costs and allowed $23,250 of claimed costs. The DRO correctly determined the amount of the refund due to tenant. Landlord was served with all relevant documents and was given ample opportunity to respond to both the TPU and DRO. The fact that there was no tenant complaint filed in this case didn’t in any way deprive landlord of due process. Landlord in fact had more chance to resolve this matter than it would have had if tenant filed a complaint with the DRO. The DRO also properly imposed triple damages. Landlord refunded to tenant only $4,930, which wasn’t close to the full overcharge amount plus interest of $26,671. 

Sovereign Realty Co.: DHCR Adm. Rev. Docket No. DW410018RO (3/28/16) [3-pg. doc.]