Rent Restoration After Fire Doesn't Include Cost of Improvements

Tenant complained of a reduction in services after a fire had forced him to move out of his apartment temporarily. The DRA ruled for tenant and reduced his rent to $1 per month while the apartment couldn't be occupied. Landlord later applied for rent restoration based on restoration of the apartment. The DRA ruled for landlord and restored tenant's rent-stabilized rent to its prior amount. Landlord appealed, arguing that the DRA should have added a rent increase to cover 1/40th of the $20,000 cost of restoring the apartment after the fire. The DHCR ruled against landlord. Whether landlord was entitled to collect a 1/40th increase isn't a proper issue in a rent restoration proceeding. Landlord can collect a 1/40th increase if tenant agrees in writing or if the apartment was vacant when improvements were made and tenant was first tenant to occupy the improved apartment. Either way, DHCR consent isn't required.

WAM Equity Partners, LP: DHCR Adm. Rev. Docket No. UI410018-RO (1/26/07) [2-pg. doc.]