Sec. 26-516. ENFORCEMENT AND PROCEDURES.
a. Subject to the conditions and limitations of this
subdivision, any owner of housing accommodations who, upon
complaint of a tenant, or of the state division of housing
and community renewal is found by the state division of
housing and community renewal, after a reasonable
opportunity to be heard, to have collected an overcharge
above the rent authorized for a housing accommodation
subject to this chapter shall be liable to the tenant for a
penalty equal to three times the amount of such overcharge.
If the owner establishes by a preponderance of the evidence
that the overcharge was not willful the state division of
housing and community renewal shall establish the penalty as
the amount of the overcharge plus interest. (i) Except as to
complaints filed pursuant to clause (ii) of this paragraph,
the legal regulated rent for purposes of determining an
overcharge, shall be the rent indicated in the annual
registration statement filed four years prior to the most
recent registration statement, (or, if more recently filed,
the initial registration statement) plus in each case any
subsequent lawful increases and adjustments. (ii) As to
complaints filed within ninety days of the initial
registration of a housing accommodation, the legal regulated
rent shall be deemed to be the rent charged on the date four
years prior to the date of the initial registration of the
housing accommodation (or, if the housing accommodation was
subject to this chapter for less than four years, the
initial legal regulated rent) plus in each case, any lawful
increases and adjustments. Where the rent charged on the
date four years prior to the date of the initial
registration of the accommodation cannot be established,
such rent shall be established by the division.
Where the rent charged on the date four years prior to the
date of initial registration of the housing accommodation
cannot be established, such rent shall be established by the
division provided that where a rent is established based on
rentals determined under the provisions of the local
emergency housing rent control act such rent must be
adjusted to account for no less than the minimum increases
which would be permitted if the housing accommodation were
covered under the provisions of this chapter.
(1) The order of the state division of housing and
community renewal shall apportion the owner's liability
between or among two or more tenants found to have been
overcharged by such owner during their particular
tenancy of a unit.
(2) Except as provided under clauses (i) and (ii) of this
paragraph, a complaint under this subdivision shall be
filed with the state division of housing and community
renewal within four years of the first overcharge
alleged and no award of the amount of an overcharge may
be based upon an overcharge having occurred more than
four years before the complaint is filed. (i) No
penalty of three times the overcharge may be based upon
an overcharge having occurred more than two years
before the complaint is filed or upon an overcharge
which occurred prior to April first, nineteen hundred
eighty-four. (ii) Any complaint based upon overcharges
occurring prior to the date of filing of the initial
rent registration as provided in section 26-517 of this
chapter shall be filed within ninety days of the
mailing of notice to the tenant of such registration.
(3) Any affected tenant shall be notified of and given an
opportunity to join in any complaint filed by an
officer or employee of the state division of housing
and community renewal.
(4) An owner found to have overcharged may be assessed the
reasonable costs and attorney's fees of the proceeding
and interest from the date of the overcharge at the
rate of interest payable on a judgment pursuant to
section five thousand four of the civil practice law
and rules.
(5) The order of the state division of housing and
community renewal awarding penalties may, upon the
expiration of the period in which the owner may
institute a proceeding pursuant to article seventy-
eight of the civil practice law and rules, be filed and
enforced by a tenant in the same manner as a judgment
or not in excess of twenty percent thereof per month
may be offset against any rent thereafter due the
owner.
b. In addition to issuing the specific orders provided for by
other provisions of this law, the state division of housing
and community renewal shall be empowered to enforce this law
and the code by issuing, upon notice and a reasonable
opportunity for the affected party to be heard, such other
orders as it may deem appropriate.
c. If the owner is found by the commissioner:
(1) to have violated an order of the division the
commissioner may impose by administrative order after
hearing, a civil penalty in the amount of two hundred
fifty dollars for the first such offense and one
thousand dollars for each subsequent offense; or
(2) to have harassed a tenant to obtain vacancy of his or
her housing accommodation, the commissioner may impose
by administrative order after hearing, a civil penalty
for any such violation. Such penalty shall be in the
amount of up to one thousand dollars for a first such
offense and up to twenty-five hundred dollars for each
subsequent offense or for a violation consisting of
conduct directed at the tenants of more than one
housing accommodation.
Such order shall be deemed a final determination for
the purposes of judicial review. Such penalty may, upon
the expiration of the period for seeking review
pursuant to article seventy-eight of the civil practice
law and rules, be docketed and enforced in the manner
of a judgment of the supreme court.
d. Any proceeding pursuant to article seventy-eight of the
civil practice law and rules seeking review of any action
pursuant to this chapter shall be brought within sixty days
of the expiration of the ninety day period and any extension
thereof provided in subdivision h of this section or the
rendering of a determination, whichever is later. Any action
or proceeding brought by or against the commissioner under
this law shall be brought in the county in which the housing
accommodation is located.
e. Violations of this law, or of the code and orders issued
pursuant thereto may be enjoined by the supreme court upon
proceedings commenced by the state division of housing and
community renewal which shall not be required to post bond.
f. In furtherance of its responsibility to enforce this law,
the state division of housing and community renewal shall be
empowered to administer oaths, issue subpoenas, conduct
investigations, make inspections and designate officers to
hear and report. The division shall safeguard the
confidentiality of information furnished to it at the
request of the person furnishing same, unless such
information must be made public in the interest of
establishing a record for the future guidance of persons
subject to this law.
g. Any owner who has duly registered a housing accommodation
pursuant to section 26-517 of this chapter shall not be
required to maintain or produce any records relating to
rentals of such accommodation for more than four years prior
to the most recent registration or annual statement for such
accommodation.
h. The state division of housing and community renewal may, by
regulation, provide for administrative review of all orders
and determinations issued by it pursuant to this chapter.
Any such regulation shall provide that if a petition for
such review is not determined within ninety days after it is
filed, it shall be deemed to be denied. However, the
division may grant one extension not to exceed thirty days
with the consent of the party filing such petition; any
further extension may only be granted with the consent of
all parties to the petition. No proceeding may be brought
pursuant to article seventy-eight of the civil practice law
and rules to challenge any order or determination which is
subject to such administrative review unless such review has
been sought and either (1) a determination thereon has been
made or (2) the ninety day period provided for determination
of the petition for review (or any extension thereof) has
expired.