9 NYCRR 2506.8

Determination of legal regulated rents; penalties; fines; assessment of costs; attorney’s fees; rent

credits; where the proceeding is commenced on or after June 14, 2019.

reliable annual rent registration statement, filed and served upon a tenant six or more years prior to

the filing of a complaint of overcharge or the initiation of a proceeding to determine the legal

regulated rent of an apartment. Any registration statement filed contemporaneously with a

certification of service shall be presumed to have been served upon the tenant in occupancy. In no

event shall the base date be prior to June 14, 2015.

Absent an exception set forth in 2506.1, if no base date can be determined subsequent to June 14,

2015, the base date shall be June 14, 2015.

prior to the filing of such registration statement, and subsequent to June 14, 2015, the rent history

contains no unexplained increases in the rent.

as to the reliability of a rent registration statement, including but not limited to:

renewal, or any other state, municipal or federal agency, regardless of the date to which the

information on such registration refers;

agency.

the rent on the base date.

determination as to:

evidence including, but not limited, to whether an unexplained increase in the registered or lease

rents, or a fraudulent scheme to destabilize the housing accommodation, rendered such rent or

registration unreliable.

stabilization law;

including, but not limited to an order issued pursuant to section 2503.4(a) of this Title, or any

regulatory agreement or other contract with any governmental agency, and remaining in effect

within six years of the filing of a complaint pursuant to this section, affects or limits the amount of

rent that may be charged or collected;

present or prior tenant was lawful;

rent during a period when the tenants were charged a preferential rent;

rent; or

on the date six years prior to a tenant’s complaint.

registration statements. Provided that increases in the legal regulated rent were lawful except for the

failure to file a timely registration, the owner, upon the service and filing of a late registration, shall not be

found to have collected an overcharge at any time prior to the filing of the late registration.

(h)

proceeding or an opportunity to join in any proceeding commenced by the division pursuant to this

section.

division continues the proceeding, the division shall give any affected tenant notice of and an

opportunity to commence a subsequent proceeding or an opportunity to join in such proceeding.

collected any rent or other consideration in excess of the collectable rent shall be ordered to pay to

the tenant a penalty equal to three times the amount of such excess, except as provided in

subdivision (f) of this section. If the owner establishes by a preponderance of the evidence that the

overcharge was not willful, the division shall establish the penalty as the amount of the

overcharge, plus interest, which interest shall accrue from the date of the first overcharge on or

after the base date, at the rate of interest payable on a judgment pursuant to section 5004 of the

Civil Practice Law and Rules, and the order shall direct such a payment to be made to the tenant.

limited to the six years preceding the complaint, provided, however, that there shall be no recovery

of treble damages for overcharges that occurred prior to June 15, 2017, and no recovery of

damages for overcharges that occurred prior to June 15, 2015. After a complaint of rent

overcharge has been filed and served on an owner, the voluntary adjustment of the rent and/or the

voluntary tender of a refund of rent overcharges shall not be considered by the division as

evidence that the overcharge was not willful.

prior to April 1, 1984.

(4)

ETPA and this Title provisions in effect on March 31, 1984, except that an overcharge

collected on or after April 1, 1984 may be subject to treble damages pursuant to this

section.

determined pursuant to section 2506.1 of this Part.

to have been overcharged during their particular occupancy of a housing accommodation, and at

its discretion, may require the owner to make diligent effects to locate prior tenants who are not

parties to the proceeding, and to make refunds to such tenants or pay the amount of such penalty as

a fine.

pay as an additional penalty the reasonable costs and attorney’s fees of the proceeding, and except

where treble damages are awarded, interest from the date of the overcharge occurring on or after

April 1, 1984, at the rate of interest payable on a judgment pursuant to section 5004 of the Civil

Practice Law and Rules.

the rent due to the present owner at a rate not in excess of 20 percent of the amount of the penalty

for any one month’s rent. If no such rent credit has been taken, the order of the division awarding

penalties may be entered, filed and enforced by a tenant in the same manner as a judgment of the

Supreme Court, on a form prescribed by the division, provided that the amount of the penalty

exceeds $1,000 or the tenant is no longer in possession. Neither of these remedies are available

until the expiration of the period in which the owner may institute a proceeding pursuant to Part

2510.12 of this Title.

(i) For overcharges collected prior to April 1, 1984, an owner will be held responsible

only for his or her portion of the overcharges, in the absence of collusion or any

relationship between such owner and any prior owners.

(ii)

1984, a current towner shall be responsible for all overcharge penalties, including

penalties based upon overcharges collected by any prior owner. However, in the

absence of collusion or any relationship between such owner and any prior owner,

where no records sufficient to establish the legal regulated rent were provided at a

judicial sale, or such other sale effected in connection with, or to resolve, in whole

or in part, a bankruptcy proceeding, mortgage foreclosure action or other judicial

proceeding, an owner who purchases upon or subsequent to such sale shall not be

liable for overcharges collected by any owner prior to such sale, and treble damages

upon overcharges that he or she collects which result from overcharges collected by

any owner prior to such sale. An owner who did not purchase at such sale, but who

purchased subsequent to such sale, shall also not be liable for overcharges collected

by any prior owner subsequent to such sale to the extent that such overcharges are

the result of overcharges collected prior to such sale.

competent jurisdiction to receive rent for the use or occupation of a housing

accommodation shall not, in the absence of collusion or any relationship between

such Receiver and any owner or other Receiver, be liable for overcharges collected

by any owner or other Receiver, and treble damages upon overcharges that he or

she collects which result from overcharges collected by any owner or other

Receiver, where records sufficient to establish the legal regulated rent have not

been made available to such Receiver. Penalties pursuant to this subdivision shall

be subject to the time limitations set forth in paragraph (2) of subdivision (a) of this

section.

overcharge.

manner set forth in Section 2509.2 of this Title.