Triple Damages Revoked in Pre-HSTPA Overcharge Case

Tenant complained to the DHCR in January 2019 of rent overcharge. The DRA ruled for tenant and directed landlord to refund $67,000, including triple damages. The overcharge finding was based in part on a rent freeze while the apartment was subject to a rent reduction order. Landlord appealed, claiming that triple damages shouldn't have been assessed.

The DHCR ruled for landlord. The DRA had noted that landlord offered tenant a $26,000 refund in October 2022 but that tenant had refused to accept it. Landlord had credited tenant's account with the offered refund. Under the safe harbor provision of DHCR Policy Statement 89-2, in effect at all times relevant to this proceeding, a landlord could rebut the presumption of willful overcharge by adjusting the collectible rent and offering a refund to a tenant for the amount of the overcharge plus interest. So landlord rebutted the presumption of willful rent overcharge. The total amount due to tenant therefore was $24,911.

Winthrop Estates Corp.: DHCR Adm. Rev. Docket No. MS210025RO (10/28/24)[3-pg. document]