Triple Damages Based on Service Reduction Order

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $8,766, including interest. The overcharge was based on a service reduction order, in effect until July 2015, which froze tenant's rent to a reduced level below what was paid. Landlord and tenant both appealed. The DHCR ruled against landlord, which showed no proof of its claim that tenant paid less than the legal rent. But the DHCR ruled for tenant, who argued that triple damages should be added to the overcharge refund. Prior DHCR decisions involving the same landlord and same building assessed triple damages against landlord for failing to comply with pre-base date service reduction orders that froze the rents in question. The overcharge refund was increased to $16,575.

Katechis/De la Cruz: DHCR Adm. Rev. Docket Nos. GN410027RO, GO410049RT (2/11/19) [3-pg. doc.]