Landlord Didn't Refund Overcharge in Time

February 1, 2011

LVT Number: #23148

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant, found that the overcharge was willful, and ordered landlord to refund $6,375. Landlord appealed and lost. Landlord claimed that the overcharge wasn't willful, because it sent tenant a full refund before the DRA issued its order. But DHCR Policy Statement 89-2 excuses landlords from a willful overcharge finding if landlords refund overcharges within the time permitted to answer the notice of the overcharge complaint.

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant, found that the overcharge was willful, and ordered landlord to refund $6,375. Landlord appealed and lost. Landlord claimed that the overcharge wasn't willful, because it sent tenant a full refund before the DRA issued its order. But DHCR Policy Statement 89-2 excuses landlords from a willful overcharge finding if landlords refund overcharges within the time permitted to answer the notice of the overcharge complaint. Since landlord didn't immediately reduce tenant's rent and issue a complete refund within the time given to answer the complaint, the DRA properly added triple damages to the overcharge finding.

Parkash: DHCR Adm. Rev. Docket No. YG610053RO (12/28/10) [2-pg. doc.]

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