Triple Damages on $96,000 Overcharge Revoked

Rent-stabilized tenant complained to the DHCR of rent overcharge in 2017. The DRA ruled for tenant. Because there was a 1989 DHCR service/rent reduction order in place on the 2013 base date, the legal regulated rent (LRR) on that date was $1,126 but the collectible rent was $268. The resulting overcharge was $96,193 plus interest and triple damages for applicable portions of the overcharge.

Landlord appealed the triple damages finding and won. Landlord pointed out that it was unaware of the rent reduction order when it bought the building but that, in response to tenant's complaint, it refunded $107,524 to tenant while the complaint was pending before the DRA. Pursuant to Policy Statement 89-2, that substantial refund showed a good faith attempt to refund overcharges and interest due to tenant. So the DHCR revoked the triple damages. The total overcharge with interest was $145,112. Subtracting the refund, landlord now owed tenant $37,587.

122 Realty (2012) LLC: DHCR Adm. Rev. Docket No. LV410012RO (12/7/24)[2-pg. document]