Improvements Paid For with Fire Insurance Proceeds

March 1, 1995

LVT Number: 9540

Landlord sued to evict tenant for nonpayment of rent. Tenant claimed a rent overcharge. The court ruled for tenant. Tenant was forced to move out after a fire gutted the apartment. Landlord then made improvements to the apartment costing over $12,000, and increased tenant's rent by 1/40th of their cost. These improvements were paid for with fire insurance proceeds. The court pointed out that, under the rent stabilization code, it must ''take into consideration all factors bearing on the equities involved'' in deciding whether a 1/40th rent increase was justified.

Landlord sued to evict tenant for nonpayment of rent. Tenant claimed a rent overcharge. The court ruled for tenant. Tenant was forced to move out after a fire gutted the apartment. Landlord then made improvements to the apartment costing over $12,000, and increased tenant's rent by 1/40th of their cost. These improvements were paid for with fire insurance proceeds. The court pointed out that, under the rent stabilization code, it must ''take into consideration all factors bearing on the equities involved'' in deciding whether a 1/40th rent increase was justified. The court found that landlord should get no rent increase because the fire insurance covered the cost of the improvements.

Home Wood Gardens v. Collier: NYLJ, p. 35, col. 5 (2/27/95) (Civ. Ct. Kings; Callender, J)

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