No Triple Damages for Overcharge Based on Partial Disallowance of IAIs

LVT Number: #28575

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $18,648, including interest. Tenant appealed and lost. Tenant claimed that the overcharge was willful and that triple damages should be assessed. The overcharge resulted from the disallowance of a portion of individual apartment improvement (IAI) costs spent by landlord before tenant moved into the apartment. The disallowed work was performed and paid for but didn't qualify as IAIs.

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $18,648, including interest. Tenant appealed and lost. Tenant claimed that the overcharge was willful and that triple damages should be assessed. The overcharge resulted from the disallowance of a portion of individual apartment improvement (IAI) costs spent by landlord before tenant moved into the apartment. The disallowed work was performed and paid for but didn't qualify as IAIs. Tenant also claimed that his rent should have been frozen because landlord didn't register the rent after 2013. But landlord didn't increase tenant's rent after 2013, so there was no overcharge. And landlord registered the apartment for 2014 and 2015 while the overcharge complaint was pending, so the rent freeze was eliminated.

Schneider: DHCR Adm. Rev. Docket No. FU210024RT (6/1/18) [3-pg. doc.]

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