Tenant's Base Rent Frozen

Tenant complained of a rent overcharge. The DRA ruled for tenant based on a rent freeze in effect in October 2003, the base rent date for tenant's complaint. The DRA found that the overcharge was willful and assessed triple damages. Landlord appealed, arguing that there was no willful overcharge. Because there was an outstanding 1992 rent reduction order, for which rent hadn't been restored, the DRA merely froze tenant's rent at the amount paid four years before tenant filed her complaint. Landlord also had refunded $792 to tenant based on its calculation of the overcharge due plus interest. Landlord claimed that it shouldn't be penalized for any miscalculation.
The DHCR ruled against landlord. The DRA notified landlord that it had until Nov. 26, 2007, unless otherwise extended, to rebut the presumption of willful rent overcharge and to adjust tenant's rent. On April 15, 2008, the DRA sent landlord a final notice of triple damages. Landlord responded on April 17, 2008, more than five months after the DRA sent its initial notice of tenant's complaint. Only at that point did landlord state that tenant was entitled to a refund, and landlord mailed tenant a check on May 1, 2008. Landlord claimed that tenant didn't cash the check. The DRA correctly imposed triple damages because landlord failed to issue a full refund of all excess rent collected plus interest. In addition, landlord issued the refund after the time limit for answering the notice of tenant's complaint.

495 Washington Avenue, LLC: DHCR Adm. Rev. Docket No. WF210029RO (7/30/08) [3-pg. doc.]