No Fraud Found in Connection with Rent Overcharge

LVT Number: #32319

Rent-stabilized tenant complained to the DHCR of rent overcharge. The DRA ruled for tenant based on overcharges occurring while a DHCR service reduction order was in effect. But no refund was ordered based on tenant's underpayment of rent. Tenant appealed and won in part. The DHCR found no proof of fraud, and the DRA had properly dismissed that claim. The DRA, consistent with long-standing DHCR policy, properly assessed only overcharges, and not interest or triple damages, resulting from the service reduction order in the time frame between its issuance date and the effective date.

Rent-stabilized tenant complained to the DHCR of rent overcharge. The DRA ruled for tenant based on overcharges occurring while a DHCR service reduction order was in effect. But no refund was ordered based on tenant's underpayment of rent. Tenant appealed and won in part. The DHCR found no proof of fraud, and the DRA had properly dismissed that claim. The DRA, consistent with long-standing DHCR policy, properly assessed only overcharges, and not interest or triple damages, resulting from the service reduction order in the time frame between its issuance date and the effective date. The DRA also properly granted IAI rent increases to the landlord in its calculation of the legal rent. Tenant did show that some rent payments were made, so the total amount of refundable overcharge was amended to $225. 

Velazquez-Rivera: DHCR Adm. Rev. Docket No. KP610018RT (10/3/22)[7-pg. document]

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