Rent Overcharge Wasn't Hyper Technical and Resulted in Triple Damages

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $9,309, including triple damages and interest. Landlord appealed and lost. Although the legal rent for the apartment was set by HPD at $1,275 in 2009, the overcharge was based on the fact that landlord didn't preserve any legal or preferential rent in tenant's base date lease. That lease listed only one set of rents (for a one-year or two-year lease term). Landlord therefore wasn't permitted to collect any rent in excess of the amount set forth on the lease, or to increase subsequent rents by any amount greater than legal rent increases based on the base date rent. Landlord correctly calculated the rent increase on the first renewal lease signed after the base date, but then collected more than the permitted guideline increase over the charged rent on subsequent renewals. Contrary to landlord's claim, this wasn't a "hyper technical" miscalculation of tenant's legal rent, and triple damages were properly applied. 

Sterling Place Condo LLC: DHCR Adm. Rev. Docket No. GU210033RO (6/5/19) [4-pg. doc.]