Landlord Refunded Money After Order Issued

Tenant complained of a rent overcharge. The DRA ruled for tenant and found an overcharge of over $17,000. Tenant appealed in 1989, claiming that the overcharge was willful. The DHCR ruled for tenant in 1997 and imposed triple damages on that portion of the overcharge occurring on or after April 1, 1984. Landlord then asked for reconsideration, stating that it never received notice of tenant's PAR. The DHCR reopened the case since its own file indicated that notice of tenant's PAR was never sent to landlord. The DHCR again ruled for tenant, and landlord appealed, claiming that it had refunded the full amount of the original overcharge determination to tenant after the DRA's order was issued. The court sent the case back to the DHCR for further consideration. The DHCR ruled against landlord. The fact that landlord refunded the overcharge after the issuance of the DRA's order didn't negate the DHCR's later finding of a willful rent overcharge. DHCR Policy Statement 89-2 provides for elimination of triple damages when landlord adjusts tenant's rent on its own within the time period to answer a rent overcharge complaint. The policy doesn't apply to refunds made after a DRA order is issued.

DiFrancesco: DHCR Adm. Rev. Dckt. No. LI410021RP (10/22/97) [6-page document]