Landlord Ignored 1995 Rent Reduction Order

Rent-stabilized tenant complained of a rent overcharge. Landlord claimed that it made individual apartment improvements costing $51,000. The DHCR ruled for tenant. Landlord proved only $37,000 of its claimed costs, so the permissible rent increase for 1/40^th improvements was less than landlord collected. In addition, the DHCR froze tenant's rent based on a 1995 rent reduction order that was still in effect. The DHCR ordered landlord to refund $21,690, including triple damages. Landlord appealed, claiming that the DHCR’s decision was unreasonable. The court and appeals court ruled against landlord. The DHCR’s ruling on the improvement costs was rationally based on documents submitted to the agency. And landlord must have known about the rent reduction order it didn't comply with, because it owned the building at all times since that order was issued. Landlord failed to prove that the overcharge wasn’t willful.

462 Amsterdam, LLC v. DHCR: NYLJ, 4/23/09, p. 40, col. 3 (App. Div. 1 Dept.; Friedman, JP, Sweeny, Catterson, Renwick, Freedman, JJ)