Default Method Used to Determine Rent Overcharge

LVT Number: #30027

The DHCR commenced an administrative proceeding against landlord for rent overcharge. The DRA ruled for tenant and ordered landlord to refund the overcharge with triple damages. Landlord appealed, and the DHCR denied landlord's PAR. Landlord then filed an Article 78 petition, claiming that the DHCR's decision was arbitrary and unreasonable. Landlord claimed that the DHCR unreasonably applied a default formula and triple damages in determining tenant's legal rent. The court and appeals court ruled against landlord.

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South Lexington Associates, LLC v. DHCR: 93 N.Y.S.3d 582, 2019 NY Slip Op 01605 (App. Div. 2 Dept.; 3/6/19; Dillon, JP, Cohen, Duffy, Christopher, JJ)