Insurance Used for Apartment Renovations Deducted

Tenant complained of a rent overcharge. The DRA ruled for tenant and reduced a 1/40th increase landlord collected for apartment improvements because the improvements had been paid for by insurance proceeds after a building fire. Landlord appealed. The DRA had taken the total insurance amount and divided it evenly by the number of apartments in the building to determine the amount used for tenant's apartment. But this was incorrect. Landlord showed that a smaller amount was used for tenant's apartment. The DHCR recalculated the permissible rent increase and found no overcharge.

Po W. Yuen Realty & Management Corp.: DHCR Adm. Rev. Dckt. No. QK410051RO (2/3/03) [2-pg. doc.]