Garage Overcharges Based on Default Formula Included Triple Damages

Rent-stabilized tenants complained of rent overcharge in connection with building parking charges. The DRA ruled for tenants after landlord failed to answer the complaint and directed landlord to refund $18,000 for a two-year period of overcharge, including triple damages. Landlord appealed and lost. Since landlord didn't respond to the complaint or to the DRA's final notice of treble damages, the DRA properly calculated the overcharge using the DHCR's default formula. Landlord didn't present a reasonable excuse for not answering the complaint and rent registrations weren't a substitute for signed leases. Landlord couldn't submit new evidence with its PAR, which wasn't submitted to the DRA. The application of the default formula froze the base date garage rent and imposition of the default formula includes a presumption that the overcharge was willful.

2325 30th Drive Realty LLC: DHCR Adm. Rev. Docket No. HM110020RO (10/10/19) [4-pg. doc.]