Total Overcharge for SCRIE Tenant Included Interest But Not Triple Damages

The DHCR's Tenant Protection Unit (TPU) conducted an audit investigation of an apartment's rent increases in 2017. TPU then determined that the unit's legal registered rent wasn't fully substantiated and directed landlord to reset the legal rent in accordance with the audit findings, refund an overcharge to tenant, and amend annual rent registrations. After landlord took no action, TPU filed a rent overcharge complaint with the DRA in 2017. The DRA notified landlord in 2020 that the base rent date was Dec. 7, 2013. Landlord denied there was any overcharge, but the DRA ruled against landlord. The DRA found a total overcharge of $7,970, including interest. Since tenant received SCRIE/DRIE benefits and paid only a portion of the legal regulated rent while landlord received the balance of the rent in a tax abatement, no triple damages were assessed.

Landlord appealed and lost. Landlord claimed that tenant paid less than the amount determined by the DRA. But the DHCR wouldn't consider new information submitted by landlord for the first time on appeal without any reasonable excuse why the information wasn't provided to TPU or to the DRA. 

339 Myrtle Avenue, LLC: DHCR Adm. Rev. Docket No. JW210041RO (1/12/22)[4-pg. document]