Landlord Can Credit FCA Overpayment to Tenant

March 24, 2014

LVT Number: #25419

The DRA suspended fuel cost adjustments (FCA) for 2013 because landlord had previously obtained a fuel cost rent increase and hadn't filed a timely 2013 report of fuel price decrease. The DRA revoked the cumulative FCA for the year and ordered that any FCA paid during that period be refunded or credited to the building's rent-controlled tenant. In 2014, the FCA would be restored prospectively minus the 2013 decrease. Tenant appealed, claiming that the 2013 FCA should be refunded, not credited. But rent control regulations permit landlord to do either.

The DRA suspended fuel cost adjustments (FCA) for 2013 because landlord had previously obtained a fuel cost rent increase and hadn't filed a timely 2013 report of fuel price decrease. The DRA revoked the cumulative FCA for the year and ordered that any FCA paid during that period be refunded or credited to the building's rent-controlled tenant. In 2014, the FCA would be restored prospectively minus the 2013 decrease. Tenant appealed, claiming that the 2013 FCA should be refunded, not credited. But rent control regulations permit landlord to do either. Tenant's PAR was denied.

Sekola: DHCR Adm. Rev. Docket No. BU220002RT (2/4/14) [2-pg. doc.]

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