No Rent Hike for Apartment Improvements Made After Fire

Landlord asked the DHCR to increase tenant’s monthly rent by $625 based on individual apartment improvements made after a fire in the apartment. Tenant’s apartment became uninhabitable after the fire in 2008. The DHCR reduced tenant’s monthly rent to $1. Landlord later renovated the apartment, and tenant moved back in. Due to an insurance deductible, landlord paid $25,000 of the $31,000 total cost of the work done. The DRA ruled against landlord. Landlord appealed and lost. Tenant didn’t consent in writing to any rent increase for 1/40^th improvements after the fire. Landlord argued that the apartment was vacant after the fire and therefore no tenant approval was needed for the rent increase. But a temporarily unoccupied apartment is not “vacant” and prior agency rulings to that effect were incorrect.

Columbus 95th Street, LLC: DHCR Adm. Rev. Docket No. XI420008RO (12/18/09) [5-pg. doc.]