Rent Subsidized by Section 8 Subject to Triple Damages

February 23, 2015

LVT Number: #26012

Rent-stabilized Section 8 tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund the overcharge with triple damages. Landlord appealed and lost. When landlord bought the building, tenant was receiving the Section 8 subsidy. Landlord assumed that tenant's rent was legal because it was being subsidized. This wasn't a sufficient reason to excuse willful rent overcharge. And even if, as landlord claimed, tenant had done something fraudulent in connection with her rent subsidy, this didn't affect the legal regulated rent.

Rent-stabilized Section 8 tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund the overcharge with triple damages. Landlord appealed and lost. When landlord bought the building, tenant was receiving the Section 8 subsidy. Landlord assumed that tenant's rent was legal because it was being subsidized. This wasn't a sufficient reason to excuse willful rent overcharge. And even if, as landlord claimed, tenant had done something fraudulent in connection with her rent subsidy, this didn't affect the legal regulated rent. It just affected how much of the rent HPD should be paying.

Hatim Group, LLC: DHCR Adm. Rev. Docket No. ZI210018RO (12/2/14) [4-pg. doc.]

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