Triple Damages Applied to Rent Overcharge Even Though Tenants Still Owed Back Rent

Rent-stabilized tenants complained of rent overcharge. The DRA ruled for tenants, finding a total overcharge of $826, including triple damages. Since tenants owed landlord over $20,000 in unpaid rent, the DRA did not direct landlord to refund the overcharge to tenants. Landlord and tenants both appealed. Landlord argued that there could be no finding of rent overcharge since tenants owed substantial unpaid rent, and that there was no willful overcharge. But owner error in connection with the amount of the legal rent wasn't a reason to waive triple damages for willful rent overcharge. Tenants argued in their PAR that the DRA made a calculation error because $3,000 toward back rent owed had been placed in an escrow account. The DHCR agreed to adjust the amount of back rent owed although it still exceeded the total overcharge.

1-3 Sherwood Terrace LLC/Pinckney & Fonseca: DHCR Adm. Rev. Docket Nos. KT910002RO, KV910012RT (4/27/23)[4-pg. document]