No Rent Overcharge for Collection of HVAC Surcharges

(Decision submitted by Steven H. Cohen of the Manhattan law firm of Borah, Goldstein, Altschuler, Nahins & Goidel, P.C., attorneys for the landlord.)

Rent-stabilized tenant complained of rent overcharge in connection with HVAC services provided at the building. The DRA ruled against tenant, who appealed and lost. Tenant claimed that the HVAC charges were part of the rent and that the Public Service Commission had determined that the HVAC system didn't constitute electric submetering. Landlord pointed out that the HVAC charges were defined in tenant's lease as "additional rent." The DHCR ruled that landlord could collect surcharges for utility service that are not part of the legal regulated rent and therefore not subject to rent stabilization. 

Hidalgo: DHCR Adm. Rev. Docket No. BX210004RT (11/6/14) [4-pg. doc.]