Willful Overcharge Found

Tenant complained of a rent overcharge. The DRA ruled for tenant and imposed triple damages for willful overcharge. Landlord appealed. The reason for the overcharge finding was that the DRA disallowed more than half of landlord's claimed 1/40th apartment improvement costs. Landlord argued that it was DHCR policy not to apply triple damages to overcharges that resulted from denial of renovation costs. The DHCR ruled against landlord. The DHCR's policy also provides that a triple damage penalty won't be revoked if 50 percent or more of the stated total cost of the claimed improvements was disallowed because the work was ordinary repairs and maintenance, not improvements. Here, landlord claimed that it spent $700 on 1/40th improvements. But the DRA disallowed over 70 percent of the claimed costs.

30th Road Realty Co., LLC: DHCR Adm. Rev. Docket No. WH110035RO (10/23/08) [2-pg. doc.]