Total Rent Overcharge with Triple Damages Was $311,534

Tenant complained to the DHCR in 2015 of rent overcharge and improper deregulation of her apartment. Tenant moved in on March 1, 2014, at a monthly $4,000 rent. Landlord claimed that the apartment had been vacancy-deregulated before tenant moved in because landlord performed individual apartment improvements (IAIs). The DRA ruled for landlord in part, finding no rent overcharge. However, the building was receiving J-51 benefits, so tenant was rent stabilized. And the rent was frozen at $4,000 due to a 2015 DHCR rent reduction order.

Tenant appealed  and won. In response to tenant's complaint, landlord initially claimed that IAIs cost $33,000. But, while the case was pending and after landlord received the DRA's Treble Damage Notice, it claimed it spent $104,390 on IAIs. Landlord provided no plausible explanation for this, and the DRA didn't fully investigate. The proof of IAIs submitted by landlord was conflicting and contradictory, and the DHCR now rejected much of landlord's proof. After recalculation, the DHCR found that the total refund due to tenant was $311,534. 

Mays: DHCR Adm. Rev. Docket No. JW410002RK (6/8/22)[11-pg. document]