HSTPA Amendments to Rent Overcharge Provisions of RSL Improperly Applied Retroactively

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and applied a six-year lookback period under HSTPA. The DRA also found that landlord waived a higher legal regulated rent by listing only the rent of $1,950 in tenants' vacancy lease. Landlord claimed that this was a preferential rent, but it wasn't designated as such with a higher legal regulated rent also listed. Tenant also was month to month for two years between 2014 and 2016 and no rent increase applied during this time. The total overcharge was $24,911, with triple damages.

Landlord appealed and won, in part. The DRA incorrectly applied retroactively HSTPA amendments to the rent overcharge provisions of the Rent Stabilization Law. These specific provisions, including application of triple damages to the entire overcharge amount, were revoked by the Court of Appeals in April 2020 in the case of Regina Metro Co. LLC v. DHCR.

The DRA correctly determined that landlord waived the claimed higher legal regulated rent in tenant's initial lease by failing to list it separately from the lower rent charged. Triple damages were still assessed going back two years from the date of the overcharge claim because landlord failed to rebut the presumption of willful overcharge. The total overcharge was reduced to $24,406.

Sixth Ave Bake LLC: DHCR Adm. Rev. Docket No. IN110052RO (10/20/20) [7-pg. doc.]