Rent Overcharge Wasn't Willful

The roommate of prior rent-stabilized tenant complained of rent overcharge in 2015. The DRA ruled for the roommate, found that she was a lawful successor tenant, and ordered landlord to refund $6,757, including interest. Landlord appealed and claimed that the roommate didn't have succession rights and that it lawfully charged her vacancy and longevity increases when it gave her a lease. The DHCR ruled for landlord. Tenant then filed an Article 78 court appeal of the DHCR's ruling. The court sent the case back to the DHCR for reconsideration. The DHCR then denied landlord's PAR and modified the DRA's original order. Tenant didn't have succession rights but was given a lawful rent-stabilized lease. However, the DRA had miscalculated the overcharge. The total overcharge to be refunded was $5,275. Since the overcharge was caused by confusion created between the issue of succession versus the terms of a court-order stipulation granting tenant a lease, the overcharge wasn't willful and treble damages didn't apply. 

50 Rosen Realty Corp.: DHCR Adm. Rev. Docket No. KM210016RP (10/27/22)[4-pg. document]