Former Mitchell-Lama A/C Surcharge Added to Legal Regulated Rent

Tenant complained of rent overcharge. She claimed that landlord improperly included an air conditioner surcharge in her base rent when it calculated her renewal lease increase. The DRA ruled against tenant, who appealed and lost. Until 2012, the building was under Mitchell-Lama. Electricity had been included in tenant’s rent, and a $20 monthly air conditioner surcharge was billed separately. Under Rent Stabilization Code Section 2521.1(j) and DHCR Advisory Opinion 91-2, the air conditioner surcharge became part of tenant’s initial legal regulated rent when the building transitioned from Mitchell-Lama to rent stabilization. Landlord was entitled to base all future renewal leases on the initial rent, which included the air conditioner surcharge.

Hayes: DHCR Adm. Rev. Docket No. CU110029RT (3/20/15) [3-pg. doc.]