No Triple Damages Against Tenant Who Overcharged Roommate

LVT Number: #25071

Roommate of rent-stabilized tenant filed a rent overcharge complaint with the DHCR, claiming that he paid more than his proportionate share of the legal regulated rent. The DRA ruled for roommate and ordered tenant to refund $2,195. The  total judgment award was $2,110 including interest. The roommate appealed the DRA's decision, seeking triple damages for willful rent overcharge. The DHCR ruled against roommate.

Roommate of rent-stabilized tenant filed a rent overcharge complaint with the DHCR, claiming that he paid more than his proportionate share of the legal regulated rent. The DRA ruled for roommate and ordered tenant to refund $2,195. The  total judgment award was $2,110 including interest. The roommate appealed the DRA's decision, seeking triple damages for willful rent overcharge. The DHCR ruled against roommate. Rent Stabilization Law Section 26-516(a) provides that any owner found to have collected an overcharge "shall be liable to the tenant for a penalty equal to three times the amount of the overcharge." But Rent Stabilization Code Section 2525.7 deals with an occupant other than a tenant and doesn't characterize excess rent collected by a tenant from a roommate as an overcharge. Therefore, because triple damages can be assessed only against an overcharge, they can't be assessed against excess rent that a tenant is directed to refund to a roommate.

Williams: DHCR Adm. Rev. Docket No. ZK410032RT (8/8/13) [2-pg. doc.]

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