Triple Damages Revoked in Pre-HSTPA Overcharge Case

Rent-stabilized tenant complained of rent overcharge prior to June 14, 2019. The DRA ruled for tenant and ordered landlord to refund $1,936, including triple damages and interest. Landlord appealed and won, in part. Landlord argued that the overcharge plus interest had been paid and refunded to the city agency that paid tenant's rent. The DHCR noted that landlord had submitted proof of payment in the amount of $1,043 to HRA/DSS, the social services agency that paid almost all of tenant's rent. Since both the DHCR and the courts considered such a refund made before the issuance of a DRA's order to be proof that the overcharge was not willful in pre-HSTPA cases, triple damages should not have been assessed in this case. The total overcharge was reduced to $1,326. The remaining overcharge amount, not previously paid to HRA/DSS, should be refunded to the tenant.

Chin Cano Realty Corp.: DHCR Adm. Rev. Docket No. KV410019RO (2/21/23)[2-pg. document]