Landlord Must Refund $45,000 in Rent Overcharges

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $45,000, including triple damages. Landlord appealed and lost. Landlord claimed that the building was substantially rehabilitated after 1974 and therefore exempt from rent stabilization. But, in a separate "AD" proceeding, the DRA found that the building was rent-stabilized based on insufficient proof of substantial rehab, and landlord didn't appeal that ruling. Landlord also argued that it had purchased the building after a judicial sale. But neither the prior landlord before the judicial sale, nor the receiver collected any rent overcharges. All rent overcharges were collected only by current landlord after the judicial sale. The receiver had signed a lease with tenant that expired on Jan. 31, 2011, at a monthly rent of $700. Landlord then charged tenant $950 in a renewal lease, which was above the permissible rent guidelines.

361 Ocean Avenue, LLC: DHCR Adm. Rev. Docket No. EU210059RO (7/14/17) [5-pg. doc.]