Landlord Can Collect Improvement Increase Despite Rent Cut Order

(Decision submitted by Kim Winn of the Queens law firm of Horing & Welikson, PC, attorneys for the landlord.) Tenant complained of a rent overcharge. The DRA ruled for tenant, and landlord appealed. Landlord claimed that the DRA had incorrectly calculated the rent landlord could charge after landlord reduced the rent based on a DHCR order finding that landlord had reduced services. The DHCR ruled for landlord. Under DHCR policy, landlord can continue to collect a pre-existing 1/40th rent increase for apartment improvements after getting a rent cut for reduced services. To calculate the rent cut, the 1/40th increase is subtracted from the rent before subtracting the guidelines increase and then is added back to get the legal collectible rent. In this case, the DRA didn't add back to tenant's rent the amount approved for 1/40th improvements. Correction of this error substantially reduced the total rent overcharge amount.

Bell Realty: DHCR Adm. Rev. Dckt. No. FH110340RO (12/4/98) [5-pg. doc.]