Fraud finding wouldn't result in extended period of triple damages.


Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $13,727, including triple damages and interest. Tenant appealed, claiming fraud. She said that triple damages should be calculated for more than two years, going back to Dec. 1, 2006, when she moved in, due to the owner's fraud. The DHCR ruled against tenant, who filed an Article 78 court appeal. The case was sent back to the DHCR for further consideration.

The DHCR ruled for tenant in part. Tenant had a HUD Section 8 lease and voucher signed in December 2006, which set the legal rent at $1,100 per month. HUD also issued a certification confirming the contract rent of $1,100. The DRA should have relied on this proof to establish the legal rent on Dec. 1, 2006, and for the next 18 months until HUD issued...

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