Landlord Mistakenly Deregulated Apartment in J-51 Building

Rent-stabilized tenant complained of rent overcharge. The DHCR ruled for tenant after disallowing landlord's claimed individual apartment improvement (IAI) costs. Landlord was ordered to refund $161,643, including triple damages and interest. Landlord filed an Article 78 court appeal, claiming that the DHCR's decision was unreasonable. The case was sent back to the DHCR for reconsideration. Tenant again argued that much of the claimed work wasn't performed. But landlord submitted invoices and cancelled checks documenting over $55,000 in IAI costs. The DHCR accepted landlord's proof and reduced the total overcharge to $10,000, including interest. The remaining overcharge wasn't willful, because landlord had mistakenly deemed the apartment to be deregulated while the building was receiving J-51 benefits.

Clermont York Associates: DHCR Adm. Rev. Docket No. CW410004RP (1/14/14) [4-pg. doc.]