Did Tenant Agree to Pay for Improvements?

Tenant complained of a rent overcharge. Landlord pointed out that, before it bought the building, a 7A administrator who managed the building made improvements to tenant's apartment under a loan from HPD. Landlord argued that the 7A administrator properly passed along the cost of 1/40th improvements to tenant. The DRA ruled against tenant, finding no overcharge. Tenant appealed, claiming that she never agreed to repay a loan secured by the 7A administrator for repairs. The DHCR reopened the case and sent it back to the DRA for further investigation. The Rent Stabilization Code requires any landlord to get written consent from a tenant for a rent increase based on 1/40th improvements made while a tenant was in occupancy. The DRA must determine whether tenant consented to a rent increase for the improvements.

Mullaney: DHCR Adm. Rev. Docket No. VI310046RT (2/1/08) [3-pg. doc.]