Improvement Increase Applied to Second Tenant to Occupy Apartment Under Same Guidelines Order

Tenant complained of a rent overcharge. The DRA ruled for tenant, and landlord appealed, claiming that the DRA mistakenly denied a rent increase for improvements. The DHCR ruled for landlord. Prior tenant had moved into the apartment on November 1, 1986. The DRA had correctly calculated, under Rent Guidelines Board Order 18, that landlord was permitted to collect a rent increase of 13.5 percent, plus $15 for low-rent surcharge, plus $126.75 representing 1/40th of the cost of apartment improvements made during vacancy. Prior tenant moved out and tenant moved into the apartment on August 1, 1987, during the same rent guidelines period. The DRA then disallowed the 1/40th increase for tenant. This was incorrect. Landlord could collect from tenant the same rent that prior tenant was paying. The total overcharge was now $650, rather than the $4,000 found by the DRA.

Gurden: DHCR Adm. Rev. Dckt. No. DE110311RO (3/6/97) [4-page document]