Prior Rent Reduction Applies to New Tenant

Tenant complained of a rent overcharge. The DHCR had previously issued a building-wide rent reduction order based on a reduction in services. The prior tenant of the apartment was one of the tenants who received the rent cut. When tenant moved in, landlord charged him the full legal rent and didn't continue the rent reduction. The DRA ruled for tenant and found that the overcharge was willful. The DRA ordered landlord to refund $3,000, including triple damages. Landlord appealed, arguing that the prior rent reduction applied only to tenants who were parties to that proceeding. Any rent reduction applied only to the apartment's prior tenant. And in any event, the overcharge wasn't willful. The DHCR ruled against landlord. A rent reduction order runs with the apartment and applies to any new tenant, until such time as the rent is restored. The apartment rent remains frozen until landlord files, and the DHCR approves, an application to restore rent. Landlord's misinterpretation of the law didn't prove that the overcharge wasn't willful. The DRA properly imposed triple damages.

IG Second Generation Partnership: DHCR Adm. Rev. Docket No. VJ410046RO (2/1/08) [4-pg. doc.]