Triple Damages Properly Assessed in Pre-HSTPA Overcharge Proceeding

Tenant complained to the DHCR of rent overcharge in 2017. The DRA ruled for tenant and ordered landlord to refund $13,025, including triple damages and interest. Among other things, the DRA ruled that landlord and tenant should contact the NYC Dept. of Finance SCRIE/DRIE Exemption Unit to advise of the overcharge finding and rent adjustment.

Landlord appealed and lost. The DHCR noted that the base rent date was Oct. 4, 2013, which was prior to enactment of HSTPA amendments to the Rent Stabilization Law's overcharge provisions. Landlord argued that its $6,116 refund to tenant in April 2020 was sufficient to rebut the presumption of willful overcharge under the applicable law and that triple damages shouldn't have been assessed. But landlord didn't make any overcharge refund to tenant until more than two and one half years after tenant filed his complaint. The DHCR found that there was no reason that the refund could not have been made in a timely manner.  And the refund wasn't a full refund and didn't include required interest. So landlord didn't rebut the presumption of willfulness of the overcharge under DHCR Policy Statement 89-2. Triple damages were properly imposed.

Derby Realty LLC: DHCR Adm. Rev. Docket No. KS110013RO (12/23/22)[4-pg. document]