Rent Overcharge with Triple Damages Found Due to Pre-Base Date Rent Reduction Orders

Rent-stabilized tenant complained of rent overcharge in February 2019. The DRA ruled for tenant and ordered landlord to refund $32,726, including interest and triple damages. The overcharge was based on two outstanding rent reduction orders from 1987 and 1988. Landlord appealed and lost. Landlord argued that it bought the building in 2018 and didn't know about the rent reduction orders. But the DRA had advised landlord of the rent reduction orders in its Final Notice to Owner -- Imposition of Treble Damages on Overcharge. So landlord was on notice of the rent reduction orders before the DRA issued its decision. RSC Section 2526.1(a)(2)(v) permits the DHCR to consider pre-base date rent reduction orders when reviewing an apartment's rent history in an overcharge case. It didn't matter that tenant moved into the unit after the rent reduction orders were issued and hadn't complained about the services discussed in those orders.

Decaj: DHCR Adm. Rev. Docket No. LS610020RO (10/24/23)[2-pg. document]