DHCR Limits Amount of 1/40th Rent Increase to Tenant's MCR

The DRA increased rent-controlled tenant's MCR by $36 per month based on the installation of a new stove, refrigerator, and fireproof door. The DRA allowed an additional rent increase of $225 per month based on 50 percent of the claimed cost for other improvements. Tenant's new monthly rent was $711. Landlord appealed and lost. Landlord argued that tenant had agreed to major renovation work in her apartment. Under rent control, landlord was entitled to a 1/40th rent increase to cover the full cost of the improvements made to the apartment. But generally, this involved painting or installation of a few appliances. And tenant thought that her Section 8 voucher would pay for any rent increase. It would be unfair to increase tenant's rent by the full amount that could result from the work performed. And landlord knew or should have known that tenant wouldn't consent to such a substantial increase to her $312 rent and wouldn't willingly consent to a $650 rent increase.

24-28 Saint Nicholas LLC: DHCR Adm. Rev. Docket No. BN420012RO (7/31/13) [5-pg. doc.]