Triple Damages Applied to Post-HSTPA Overcharge Despite Refund Made While Complaint Pending

Rent-stabilized tenant complained to the DHCR about rent overcharge in 2020. She claimed that her rent had been frozen pursuant to a previously issued DHCR rent reduction order. The DRA ruled for tenant, finding there were in fact three separate rent reductions in effect at the building. The total overcharge from March 1, 2018, through March 31, 2024, was $1,154, including triple damages.

Landlord filed a request for reconsideration, stating that it had refunded $505 to tenant already. The DRA noted that this refund was made more than three years after tenant filed her overcharge complaint, that triple damages still applied, but that landlord could deduct the prior refund from the total refund ordered by the DRA. Landlord appealed, claiming that its refund should have been deducted from the overcharge prior to the assessment of any interest or triple damages.

The DHCR ruled against landlord and modified the DRA's order. Since tenant's complaint was filed after the HSTPA was enacted, triple damages had to be applied. The DHCR adjusted the DRA's order to reflect that the total refund now due to tenant was $649.

Manchester I LLC: DHCR Adm. Rev. Docket No. MS710004RO (12/3/24)[4-pg. doc.]