Tenant Can Repay Revoked Overcharge Refund Over 48 Months

LVT Number: #20286

Tenant complained of a rent overcharge. The DRA ruled for tenant in 2006 based on landlord's default and ordered landlord to refund $8,800. Tenant opted to credit portions of the refund against monthly rent payments. A year later, the DRA revoked that order and found there was no overcharge. The DRA ruled that since tenant now owed rent for the months she didn't pay, she could repay landlord over an 18-month period. Tenant appealed, claiming that repayment would create a hardship for her. The DHCR ruled for tenant in part. It would be unfair to landlord to reinstate the overcharge finding.

Tenant complained of a rent overcharge. The DRA ruled for tenant in 2006 based on landlord's default and ordered landlord to refund $8,800. Tenant opted to credit portions of the refund against monthly rent payments. A year later, the DRA revoked that order and found there was no overcharge. The DRA ruled that since tenant now owed rent for the months she didn't pay, she could repay landlord over an 18-month period. Tenant appealed, claiming that repayment would create a hardship for her. The DHCR ruled for tenant in part. It would be unfair to landlord to reinstate the overcharge finding. Landlord proved that it never received notice of tenant's overcharge complaint, and the DHCR properly revoked the default and found no overcharge. But tenant was elderly and low income. If she had to repay over 18 months, this would add $450 per month to her current rent. The DHCR ruled that tenant could repay over a 48-month period any portion of the revoked overcharge ruling she took credit for.

Murray: DHCR Adm. Rev. Docket No. VJ210066RT (1/9/08) [3-pg. doc.]

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