Overcharge Resulted from Incorrect Guidelines Increase for SRO Unit

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $7,447, including triple damages and interest. The DRA found that the base date rent was lawful, but there had been an overcharge after that date. The overcharge finding resulted from landlord's failure to apply Hotel Guidelines to a rent increase applied to tenant's SRO unit. Both landlord and tenant appealed and lost. Landlord argued there was no willful overcharge but failed to set forth any proof that it met any of the exceptions under DHCR Policy Statement 89-2 to avoid triple damages. Tenant claimed that HSTPA amendments should have been applied to extend the lookback period for rent overcharge. But the complaint was filed before June 14, 2019, and the Regina decision by New York's highest court struck down retroactive application of HSTPA overcharge provisions. Tenant also claimed that landlord engaged in a fraudulent scheme to deregulate the unit. But the apartment was registered every year with the DHCR since 2010 and landlord never claimed that the unit was exempt from rent stabilization.

Bowen/1234 Broadway LLC: DHCR Adm. Rev. Docket Nos. IS410042RK, IS410043RK (6/28/21)[8-pg. document]