No Triple Damages Where Overcharge Resulted from Failure to Register Apartment

Tenant complained of rent overcharge and improper apartment deregulation. The DRA ruled for tenant and ordered landlord to refund $4,275, including triple damages.

Landlord appealed and won, in part. The DRA correctly found an overcharge because landlord charged a legal rent of $1,350 while the collectible rent was frozen at $1,325 as of April 1, 2014, because of landlord's failure to register the apartment that year. Landlord didn't file the missing 2014 and 2015 registrations prior to the issuances of the DRA's order, so it didn't avoid the rent freeze penalty required under Rent Stabilization Code (RSC) Section 2528.4. Landlord also failed to submit sufficient proof that the apartment was deregulated in 2011 or 2012. Submission of a deregulated lease prior to the base date was insufficient evidence of a deregulation.

However, the DHCR revoked the triple damages. RSC Section 2526.1 provides that triple damages may not be assessed on overcharges based solely on the failure to register. Since failure to register in 2014 and 2015 was the sole reason for the overcharge finding in this case, interest should instead be assessed. So the total refund due tenant was reduced to $1,842.

Leagem Partners LLC: DHCR Adm. Rev. Docket No. JW410009RO (1/10/22)[3-pg. document]