DHCR final notice of treble damages: how owners respond
The final notice is DHCR's last step before an order. It states proposed findings, and it is the owner's last chance to change them at the Rent Administrator level.
What the notice is
After a tenant files an overcharge complaint and the owner answers, DHCR may issue a final notice proposing to find an overcharge and impose treble damages. It is not an order. The findings are proposed and can change based on what the owner submits. The response deadline on the notice is short. Missing it means the order issues on the record as it stands.
Two separate questions
Every response has to address two different things, and they should not be merged.
| Question | What decides it |
|---|---|
| Is there an overcharge, and how much? | The legal regulated rent on the base date, the lawful increases since, and the rent actually collected. |
| Was it willful? | Willfulness is presumed. The owner must show, by a preponderance of the evidence, that it was not. |
An owner can lose the first question and still win the second, which reduces the award from three times the overcharge to the overcharge plus interest.
The look-back period
For complaints governed by the 2019 Housing Stability and Tenant Protection Act, DHCR examines six years of rent history, and treble damages can apply across that period. Overcharges that occurred before June 14, 2019 are generally governed by the prior law, following the Court of Appeals' 2020 decision in Regina Metropolitan Co. v. DHCR.
The refund option
Under DHCR Policy Statement 89-2, an owner who adjusts the rent and refunds the overcharge with interest within the time allowed to answer the final notice can avoid treble damages. DHCR has treated a prompt, complete refund as evidence the overcharge was not willful. The tradeoff: the refund concedes the overcharge. It makes sense when the overcharge is clear and the only real fight is over the multiplier.
When DHCR's number comes from missing records
If the owner did not answer DHCR's earlier requests or produce leases and ledgers, the proposed overcharge may be a default finding rather than a calculation from the actual rent history. That is a different problem with a different fix. See records requests and default findings.
Have Evan review it
Send the notice, every earlier DHCR mailing in the case, and the leases and ledger for the apartment. I will tell you which arguments are available on your record before the response deadline.
Flat fee, quoted in writing before any work begins. Written memo delivered on a fixed date.