Rent Overcharge Based on Unproved IAI Costs Wasn't Willful

Tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $89,000, including interest. Landlord and tenant both appealed and lost. Landlord claimed that the DRA improperly discounted a prior tenancy and individual apartment improvement (IAI) rent increases when calculating the legal rent. But the DHCR noted that the tenancy in question lasted only one month and that tenant had been temporarily relocated to complaining tenant's apartment. He returned to his own apartment shortly thereafter. The rent paid for a one-month occupancy shouldn't impact the rent history of the subject apartment. The DRA also properly disallowed any IAI increase because landlord's documentation was suspect and insufficient, with many irregularities and inconsistencies. Tenant claimed that the overcharge was willful and should have resulted in triple damages. But the DHCR found that an overcharge resulting from the disallowance of an IAI rent increase based on landlord's inadequate documentation wasn't willful. Tenant didn't deny that renovations were performed in the apartment. Tenant also didn't prove there was any fraud in this case. 

PWV Acquisition Owner LLC/Goldstein: DHCR Adm. Rev. Docket No. GP410015RO, GP410032RT (7/17/18) [9-pg. doc.]