Triple Damages Awarded for Using Wrong Rent Guidelines Increase

March 1, 2011

LVT Number: #23236

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $4,665, including triple damages. Landlord appealed, claiming that the overcharge wasn't willful. Landlord had to offer tenant a renewal lease before the applicable rent guidelines increase had been issued by the Rent Guidelines Board. But in those circumstances, landlord was required to adjust the guidelines increase when the new percentage increase was issued. Landlord failed to do so, and therefore didn't overcome the presumption of willful overcharge.

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $4,665, including triple damages. Landlord appealed, claiming that the overcharge wasn't willful. Landlord had to offer tenant a renewal lease before the applicable rent guidelines increase had been issued by the Rent Guidelines Board. But in those circumstances, landlord was required to adjust the guidelines increase when the new percentage increase was issued. Landlord failed to do so, and therefore didn't overcome the presumption of willful overcharge.

Lexington Hills, LLC: DHCR Adm. Rev. Docket No. YB910079RO (11/17/10) [5-pg. doc.]

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