DRA Incorrectly Calculated Increase for Fractional-Term Leases

Tenant complained of a rent overcharge on her garage space rent. The DRA ruled for tenant, finding a total overcharge of $311. Landlord appealed, arguing that the DRA miscalculated permissible rent increases under rent guidelines numbers 4 and 5 by deeming incorrect lease terms for the fractional lease periods covered by those guidelines. The DHCR ruled for landlord. Landlord correctly cited the rent guidelines provisions authorizing an increase equivalent to the next highest year's increase for renewal lease terms that are fractionally in excess of one or two year's length. Tenant's 14-month deemed lease term, running from Nov. 1, 1972, through Dec. 31, 1973, was eligible for a two-year guidelines increase of 8 1/2 percent instead of a one-year increase of 6 1/2 percent. And the 26-month lease term, running from Jan. 1, 1974, through Feb. 28, 1976, qualified for the three-year guidelines increase of 10 1/2 percent instead of a two-year increase of 8 1/2 percent.

River Park Associates Ltd. Partnership: DHCR Adm. Rev. Dckt. No. BG-610242-RO (7/6/95) [3-page document]