Untimely Overcharge Refund Results in Triple Damages

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and disallowed the cost of some of the apartment improvements claimed by landlord. The DRA ordered landlord to refund $6,500, including triple damages for willful overcharge. The DRA noted that landlord already had refunded $3,800. Landlord appealed and lost. Landlord refunded a portion of the overcharge during the time afforded by the DRA to answer the notice of tenant's complaint. But landlord refunded another portion only after receiving from the DRA a final notice of imposition of triple damages. DHCR Policy Statement 89-2 allows landlords to avoid triple damages by a good-faith adjustment of tenant's rent and a refund with interest "within the time to interpose an answer to the complaint." Landlord's additional refund was made only after notice of impending triple damages and didn't qualify.

Century Group, LLC/White: DHCR Adm. Rev. Docket Nos. YC210020RO, YC210053RT (8/2/10) [7-pg. doc.]