Overcharge Refunded Before Complaint Answered

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and found a total overcharge of almost $37,000, including interest and triple damages. The DRA noted that landlord already had refunded $14,500 to tenant. Landlord appealed and disputed the triple damages. It had refunded the full overcharge plus interest to tenant before answering tenant's complaint. The DHCR ruled for landlord. Under DHCR Policy Statement 89-2, triple damages for willful overcharge aren't charged if landlord acts in good faith by issuing a full refund with interest to tenant prior to answering the overcharge complaint. The triple damages were removed from the overcharge finding.

Grand Review LLC: DHCR Adm. Rev. Docket No. YG110076RO (8/3/11) [3-pg. doc.]