Fuel Cost Adjustment Increases Suspended

Landlord appealed the DRA's suspension of all fuel cost adjustments (FCAs) for rent-controlled tenants for the year 2010. The DRA found that landlord had previously obtained a fuel cost rent increase and then failed to file a timely 2010 report of fuel price decrease. The DRA revoked the cumulative FCA for 2010 and ordered that any FCA paid during that time be refunded and credited to tenants. After 2010, the cumulative FCA would be restored prospectively minus $5.24 per room. This reflected the decrease effective Jan. 1, 2010. The DHCR ruled against landlord. Since there was a finding of a fuel price decrease for 2010, landlord was required under rent control regulations to serve and file a report for a fuel price decrease. Since landlord failed to do so, the DRA properly disallowed during 2010 all fuel cost adjustments previously obtained.

Dimonda: DHCR Adm. Rev. Docket No. YI220003RO (6/29/11) [2-pg. doc.]