Landlord Delayed in Refunding Rent Overcharge

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $3060, including triple damages and minus a refund of $1,380 that landlord had given tenant while the case was pending before the DRA. Landlord appealed and lost. Landlord argued that there should be no triple damages because landlord refunded the overcharge while the case was pending before the DRA. But landlord failed to make the refund until about a year after the DRA sent landlord notice of tenant’s complaint. DHCR Policy Statement 89-2 states that a landlord can establish the lack of willfulness by adjusting tenant’s rent within the time afforded to furnish the DHCR with an initial response to notice of the overcharge complaint. Since landlord failed to do so, the DRA correctly imposed triple damages.

1472 Properties LLC: DHCR Adm. Rev. Docket No. DW210012RO (6/24/16) [2-pg. doc.]