Triple Damages Imposed on Overcharge Caused by Prior Rent Reduction Order

Rent-stabilized tenant complained of rent overcharge. The DRO ruled for tenant, finding that prior rent reduction orders had frozen the rent and landlord could collect no rent increases until the DHCR issued an order restoring the rent. Landlord appealed and lost. Although tenant’s based date rent was $1,010, the earliest of three outstanding rent reduction orders issued in 1987 froze the apartment’s rent at $253. In this case, the DRA properly assessed triple damages on the overcharge because the DRO had notified landlord in 2015 of the outstanding rent reduction orders and landlord failed to file rent restoration applications while the DRO was processing tenant’s overcharge complaint. That failure and the existence of outstanding rent reduction orders that were made effective during the four-year rent review period warranted triple damages. 

Zohov Realty: DHCR Adm. Rev. Docket No. DW210032RO (3/22/16) [4-pg. doc.]