Triple Damages Applied to Overcharge Resulting from Rent Reduction Order

Rent-stabilized tenant complained of rent overcharge based, in part, on landlord's failure to lower the collectible rent for his apartment in accordance with a 1986 rent reduction order issued by the DHCR. The DRA ruled for tenant and reduced the four-year base date rent from $1,230.24 to $353.27 to reflect the rent freeze resulting from the rent reduction order for the period from Oct. 1, 2011, to July 31, 2013, when a rent restoration order was issued. Another period of rent overcharge occurred between Aug. 1, 2015, and Aug. 31, 2016, based on landlord's misapplication of MCI rent increases. The DRA directed landlord to refund $36,477 to tenant, including triple damages and interest.

Landlord appealed and lost. Landlord protested application of the rent reduction order to the collectible rent, but this had long been directed by New York's highest court in the case of Cintron v. Calegaro. Landlord also argued against triple damages. But a number of cases upheld triple damages resulting from rent freezes caused by pre-base date rent reduction orders. The fact that landlord refunded some portion of the overcharge while tenant's complaint was pending also didn't prevent application of triple damages.

87-87 Hillside Park, LLC: DHCR Adm. Rev. Docket No. KX110017RO (4/4/23)[4-pg. document]