New Landlord Must Refund Suspended Fuel Passalong

The DRA suspended all fuel cost adjustments in landlord's building for 1986. This was because prior landlord had obtained allowable fuel cost adjustments but didn't serve and file the required report of fuel cost decrease on time. Landlord appealed, claiming that it shouldn't be penalized because prior landlord didn't file the report on time. Landlord also claimed that prior landlord didn't collect the 1987 fuel cost adjustment to make up for the suspended 1986 passalong. The DHCR ruled against landlord. A landlord must refund a suspended fuel cost adjustment even if collected by prior landlord. And there was no proof that prior landlord refunded any money to tenants or that noncollection of the 1987 passalong was intended to or did function as a refund for 1986.

Dunbar Partners: DHCR Adm. Rev. Dckt. No. DH520464RO (1/6/95) [3-page document]