Landlord Avoids Triple Damages

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and found that landlord must refund $18,000 to tenant. Since landlord had already done so while tenant's complaint was pending, no triple damages were imposed. Tenant appealed and lost. Tenant claimed that the overcharge was willful; therefore, landlord must pay triple damages. But DHCR Policy Statement 89-2 excuses landlord's from triple damages if an overcharge is fully refunded within the time that landlord is given to answer tenant's complaint. Tenant challenged this policy, but the DHCR had the discretion to provide an incentive to landlords to quickly resolve an overcharge claim by its long-standing policy.

Sherman: DHCR Adm. Rev. Docket No. ZB210041RT (3/18/12) [2-pg. doc.]