DHCR Need Not Address 1/40th Rent Increase Question

Tenant complained of a reduction in services. He had to move out of his apartment temporarily after a fire. The DRA ruled for tenant and reduced his rent to $1 per month. Landlord later applied for rent restoration based on the restoration of services. The apartment had been renovated and tenant had moved back in. The DRA ruled for landlord. Landlord appealed, saying that the DRA didn't address the landlord's request for a 1/40th rent increase. Landlord had spent $20,000 on improvements to the apartment after the fire. The DHCR ruled against landlord. The only issue to be determined on the rent restoration application was whether and when the apartment became habitable again. The issue of whether landlord was entitled to add 1/40th of the cost of the claimed improvements to the rent couldn't be raised in a rent restoration proceeding. The DHCR's consent isn't required. Landlord can collect a 1/40th increase without tenant's consent if tenant is the first tenant to occupy the apartment after a vacancy. Or landlord can collect this increase from an existing tenant if tenant consents in writing. The DHCR order didn't state which provision applied to this case.

WAM Equity Partners, LP: DHCR Adm. Rev. Docket No. UI410018-RO (1/26/07) [2-pg. doc.]