Refund Delay Resulted from Landlord's Attempt to Apportion Refund Owed to DSS

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $26,955, including triple damages and interest and reflecting a prior refund of $18,177. The overcharge finding was based on landlord's failure to preserve a higher legal regulated rent in tenant's 2012 renewal lease.

Landlord appealed and won. Landlord had issued refunds to both tenant and the NYC Department of Social Services (DSS), which paid a portion of tenant's rent. Landlord argued that the DRA should have apportioned the overcharge refund. The DHCR removed the triple damages. Landlord had refunded the $18,177 to tenant and DSS months before the DRA issued the overcharge finding. Landlord reduced tenant's rent within the time granted to answer tenant's complaint and attempted to apportion the correct amount between tenant and DSS. Only a small balance of $885 remained on the overcharge to be refunded. The DHCR doesn't apportion overcharges between tenants and DSS since DSS normally doesn't pay a set amount of monthly rent. It was best for landlord to work out the amount owed to DSS, as landlord did here.

Borys: DHCR Adm. Rev. Docket No. GT210012RO (6/3/19) [3-pg. doc.]