No Overcharge for $100 Air Conditioning Fee Included in Initial Rent

August 25, 2017

LVT Number: #27853

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $58,490, including triple damages and interest. The DRA found that a prior DHCR order permitting a change from electrical inclusion to electrical exclusion resulted in a rent reduction of $160 per month. Landlord appealed and won. A $100 air conditioning charge for five A/C units was part of tenant's original 1976 rent and wasn't a surcharge for the cost of electricity to run the air conditioners.

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $58,490, including triple damages and interest. The DRA found that a prior DHCR order permitting a change from electrical inclusion to electrical exclusion resulted in a rent reduction of $160 per month. Landlord appealed and won. A $100 air conditioning charge for five A/C units was part of tenant's original 1976 rent and wasn't a surcharge for the cost of electricity to run the air conditioners. So, the prior electrical exclusion order did not warrant reduction of tenant's monthly rent beyond $60. The total rent overcharge was reduced to $35,576.

Parker Yellowstone LP/Chetrick: DHCR Adm. Rev. Docket Nos. EU110065RO, EU110079RT (6/23/17) [6-pg. doc.]

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