Apartment Improvement Increase Not Affected by Rent Reduction Order

Tenant complained of a rent overcharge. The DRA ruled against tenant. Tenant and landlord appealed. Landlord claimed that the DRA incorrectly listed the collectible rent after the rent reduction, in that the 1/40th increase should have been added back in after the vacancy allowance was deducted. So the collectible rent should have been listed at a higher amount than that found by the DRA plus the 1/40th increase. The DHCR ruled for landlord. Landlord correctly pointed out that the rent increase for the apartment improvements was not affected by the rent reduction order because it started collecting the rent increase before the rent reduction order was issued.

Yates/301 W. 111th Owners, LLC: DHCR Adm. Rev. Dckt. Nos. RC410011RO & RB410009RT (4/11/03) [3-pg. doc.]