Triple Damages Revoked Where Landlord Showed It Made Refund to Tenant

The DHCR's Tenant Protection Unit (TPU) referred a rent overcharge matter to the DRA after finding that landlord didn't sufficiently prove claimed individual apartment improvements (IAIs) to tenant's apartment. The DRA opened an overcharge complaint and ruled for tenant, directing landlord to refund $56,000 to tenant, including triple damages. Landlord could deduct a $29,000 refund made to tenant.

Landlord appealed and won, in part. Landlord argued that tenant had withdrawn his complaint before the DRA ruled on the rent overcharge claim and that tenant had received a full refund of the overcharge plus interest. The DHCR found that tenant's withdrawal couldn't terminate the rent overcharge proceeding because it was initiated by TPU, not the tenant. The base date for purposes of the DRA complaint was May 23, 2012, which was four years before the date that TPU referred the matter to the DRA. But while the refund check issued by landlord wasn't initially received by tenant, this was because tenant had moved out before TPU referred the case to the DRA. Tenant later acknowledged that he received the refund and had settled with landlord. Landlord showed that the overcharge wasn't willful, and the triple damages finding was revoked.

Riverside Drive 894 Realty, LLC: DHCR Adm. Rev. Docket No. FS410010RO (5/8/18) [6-pg. doc.]