Overcharge Willful Where No Timely Refund

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and disallowed any 1/40th rent increase for individual apartment improvements claimed by landlord. The DRA found that the overcharge was willful and imposed triple damages. Landlord appealed and lost. Landlord claimed that the overcharge wasn't willful and that tenant was given a rent credit for the overcharge. But landlord didn't make a timely offer to refund overcharges to tenant while the case was pending before the DRA and never gave tenant an actual money refund including interest. Landlord gave tenant only a rent credit, which tenant denied receiving. In addition, before issuing the rent credit, landlord increased tenant's rent based on apartment improvements that the DHCR's inspection had shown weren't made.

928 Myrtle Avenue, LLC: DHCR Adm. Rev. Docket No. XE210037RO (8/1/09) [3-pg. doc.]