Rent Administrator Miscalculated Rent Overcharge

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant but found that no refund was owed because landlord already issued a refund to tenant in response to the complaint. The total overcharge was $851, with interest. No triple damages were added since landlord had refunded the overcharge.

Tenant appealed and won, in part. Tenant pointed out that his back-dated June 1, 2015, lease wasn't valid because the lease was actually signed on June 1, 2016. That lease was a one-year lease that should have a 0 percent renewal increase. The DHCR noted that if a renewal lease is back-dated, tenant has the option of whether the lease commences on the date it would've begun had a timely offer been made, or the date of the first rent payment occurring no less than 90 days after the offer is actually made. The guideline increase must be the lower of the two possible rates. Since tenant stated a desire that his renewal lease commence Sep. 1, 2016, the DRA's finding of a renewal commencement on Sep. 1, 2015, was in error. But tenant was incorrect that the guideline increase should be 0 percent. The two-year renewal guideline of 2 percent in September 2016 applied for tenant's two-year renewal lease. So the total overcharge was $959 plus interest, instead of $851. Since landlord had issued a good faith, reasonably calculated refund to tenant during the time allotted by the DRA, it rebutted the presumption of willful overcharge and no triple damages were applied. 

Soumare: DHCR Adm. Rev. Docket No. IS210086RK (1/6/21) [3-pg. doc.]