Total Overcharge Reduced from $20,800 to $1,295 Because DRA Omitted IAI Increase

Tenant complained to the DHCR of rent overcharge in 2018. The DRA ruled for tenant, finding that the 2014 base date rent was $1,100, that tenant moved into the unit on Jan. 1, 2016, that landlord was entitled to collect $1,298 per month from tenant when he moved in, that landlord collected instead $1,500 per month, that the legal rent was later frozen at $1,314 based on a DHCR rent reduction order, that the complaining tenant moved out on June 30, 2021, and that the total overcharge was $13,830. Since landlord offered and tenant refused a timely overcharge refund, no triple damages were assessed. The total overcharge plus interest was $20,802.

Landlord appealed and pointed out that the DRA failed to included a rent increase for individual apartment improvements (IAIs) in its overcharge calculation. The DHCR agreed and found that landlord collected a lawful $1,500 rent when tenant moved into the unit since the lawful IAI increase was $202 per month for IAIs costing $8,084. The total overcharge plus interest was $1,295.

Tom: DHCR Adm. Rev. Docket No. MP210003RO (10/22/24)[3-pg. document]