Landlord Didn't Properly Reduce Rent Upon Transfer to Electrical Exclusion

Rent-stabilized tenant complained of rent overcharge in 2012. He had lived in the apartment since 1976, and his initial monthly rent of $650 included a $100 charge for five air conditioners (at $20 each) installed by landlord. At that time, the building was electrical-inclusion and landlord paid tenant's electrical costs. By prior DHCR order issued in 2008, the building was changed to electrical exclusion with tenants paying their own electricity costs. That order stated that landlord could no longer collect any previously authorized appliance charges to offset the cost of electricity, and included a schedule of rent reductions for various-sized apartments. Tenant's monthly rent reduction was listed as $60. Tenant's overcharge claim stemmed from landlord's failure to apply the rent reductions for the electricity change.

The DRA ruled for tenant and ordered landlord to refund $58,489, including triple damages. Appeals to the DHCR were denied, and an Article 78 court appeal was then filed and the case was sent back to the DHCR for reconsideration.

The DHCR ruled for both sides in part.  For the five air conditioners, the electrical cost was $31.50 per month at the outset. This charge plus applicable renewal lease increases brought the monthly appliance charge up to $90 at the time it was discontinued in 2009. There was also an outstanding DHCR rent reduction order. Upon recalculation, the total overcharge, including triple damages, was $55,573.

Parker Yellowstone, LP/Chetrick: DHCR Adm. Rev. Docket Nos. HQ110003RP, HQ110004RP (8/18/20) [7-pg. doc.]