Rent Credit to Tenant for Making Repairs

Tenant filed a fair market rent appeal, challenging the first stabilized rent of the apartment, which was $1,500 per month. Landlord claimed that it was entitled to a 1/40th increase in apartment improvements. Tenant made the improvements, which landlord subsidized by giving tenant a $6,000 rent credit. The DRA ruled against landlord and set the fair market rent on the basis of the special guidelines order. Landlord appealed, claiming it could collect a 1/40th increase for the apartment improvements. Tenant claimed that most of the work done was maintenance and repairs. The DHCR ruled against landlord. Most of the work tenant did was in the nature of maintenance and repair. The DHCR considered the rent credit to be more in the nature of an allowance to tenant for doing extensive repair work and not an appropriate expenditure on which to base a rent increase.

Gran Sabana Realty Corp.: DHCR Adm. Rev. Dckt. No. DF410323RO (11/14/97) [4-page document]