Higher Comparable Rent Considered

Tenant filed a fair market rent appeal. The DRA ruled for tenant and directed a $17,000 refund of excess rent paid. Landlord appealed, claiming that the DRA should have allowed an additional individual apartment improvement rent increase and that the MBR and fuel cost adjustment components used to calculate the special fair market rent guideline weren't correct. Landlord also asked for a chance to submit comparability data under revised rules set forth in the Rent Regulation Reform Act of 1997. The DHCR ruled for landlord. On the date tenant moved in, there was another rent in the same line of apartments that was higher and that hadn't been challenged. This must be considered as a comparable rent. Also, the 1/40th rent increase allowed by the DRA must be added to the comparable rent. This made the fair market rent for tenant's apartment higher than the rent charged. So tenant's complaint was dismissed.

Surfside Investment: DHCR Admin. Rev. Dckt. No. MK410027RO (9/24/02) [4-pg. doc.]