Rent Overcharge Resulting from SCRIE Error Not Willful

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $8,528, including interest. Landlord appealed and lost. Landlord argued that the case should have been dismissed because tenant had moved out and that the overcharge was caused by an error made by the SCRIE program, not by landlord. The DHCR pointed out that it didn't matter if a tenant had vacated an apartment; this wasn't grounds to dismiss the overcharge complaint. And landlord was responsible for returning excess rent whether it was received directly from the tenant or in the form of a SCRIE tax credit. It didn't matter that the collection of excess rent was caused by a mistake made by SCRIE. The reason the DRA didn't find that the overcharge was willful and assess triple damages was because the overcharge "was the result" of SCRIE's error.

Hendrik Hudson House, LP: DHCR Adm. Rev. Docket No. KQ610016RO (8/2/22)[2-pg. document]