No Triple Damages Where Landlord Bought Building After Judicial Sale

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and froze the collectible rent for the apartment based on a rent reduction order issued in 2012, made effective Aug. 1, 2011, that was still in effect. The DRA ordered landlord to refund $6,000, including triple damages. Landlord appealed, claiming that there should be no triple damages and that the DRA improperly failed to apply the judicial sale exemption to the case. The DHCR ruled for landlord. Landlord documented that it was a subsequent judicial sale purchaser after a mortgage foreclosure and had no relationship with the prior landlord. Landlord also didn't receive complete rent history records from prior landlord. So, while the rent overcharge determination was correct and lawful, triple damages must be revoked. The total refund due to tenant, with interest, was $2,278.

1521 Sheridan LLC: DHCR Adm. Rev. Docket No. FM610056RO (10/26/17) [3-pg. doc.]