Triple Damages Revoked

Tenant complained of a rent overcharge. The DRA ruled for tenant. The DRA also found that the overcharge was willful and imposed triple damages. Landlord appealed, claiming that no triple damages should have been awarded because the overcharge was based on an honest mistake in calculating an improvements rent increase. Landlord said that when its bookkeeper calculated a rent increase for the improvements, he used the total cost, including the cost of repair and maintenance items, instead of the portion of the cost that was for eligible improvements. The DHCR ruled for landlord. The DRA never notified landlord, even in its triple damages notice, that some of the claimed apartment improvements were for repair items and would be disallowed. The DHCR revoked the triple damages portion of the overcharge finding.

Imperio Realty LLC: DHCR Adm. Rev. Dckt. No. MJ610056RO [2-pg. doc.]